Archive · 22 Jul 2026
NCLT Approves Siyaram Silk Mills' Bonus Preference Shares Scheme
Siyaram Silk Mills, a company that makes silk products, has a lot of extra money saved up.
They wanted to share this extra money with their shareholders by giving them bonus preference shares instead of cash.
The National Company Law Tribunal (NCLT) approved this plan because it is fair, follows the rules, and is good for the company and its shareholders.
The company's board and most of its shareholders and creditors agreed to this plan.
The NCLT said the company must follow all the necessary legal steps to make this plan official.
NCLT approved Siyaram Silk Mills' scheme to issue bonus preference shares to equity shareholders.
The scheme utilizes accumulated general reserves and is deemed fair and reasonable.
The company's board and majority of shareholders and creditors approved the scheme.
The tribunal directed the company to comply with statutory formalities and submit the scheme for stamp duty adjudication.
The scheme aims to reward shareholders while maintaining financial stability and liquidity.
- Who
- Siyaram Silk Mills Limited, National Company Law Tribunal (NCLT)
- What
- Approval of a scheme to issue bonus preference shares to equity shareholders
- When
- July 21, 2026
- Where
- Mumbai
- Why
- To reward shareholders by distributing surplus reserves and maintain financial stability
Company's Perspective
Regulatory and Shareholder Perspective
Purpose of the Scheme
Company's Perspective
The company aims to reward shareholders by distributing surplus reserves through bonus preference shares, maintaining financial stability and liquidity.
Regulatory and Shareholder Perspective
Regulators and shareholders expect the scheme to comply with statutory requirements and be fair and reasonable, not contrary to public policy.
- Company
- Siyaram Silk Mills Limited
- Scheme Type
- Bonus Preference Shares
- Date of Approval
- July 21, 2026
- Section of Companies Act
- Section 230
- Tribunal Members
- K.R. Saji Kumar (Judicial Member), Anil Raj Chellan (Technical Member)
- Approval Status
- Unanimously approved by Board of Directors and majority approval from equity shareholders and unsecured creditors