Variation in terms of contract or objects in prospectus
Section 27 of the Companies Act, 2013 deals with variation in terms of contract or objects in prospectus. A company shall not, at any time, vary the terms of a contract referred to in the prospectus or objects for which the prospectus was issued, except subject to the approval of, or except subject to an authority given by the company in general meeting by way of special resolution: Provided that the de The Act came into force on 01 Apr 2014.
(1) A company shall not, at any time, vary the terms of a contract referred to in the prospectus or objects for which the prospectus was issued, except subject to the approval of, or except subject to an authority given by the company in general meeting by way of special resolution:
Provided that the details, as may be prescribed, of the notice in respect of such resolution to shareholders, shall also be published in the newspapers (one in English and one in vernacular language) in the city where the registered office of the company is situated indicating clearly the justification for such variation:
Provided further that such company shall not use any amount raised by it through prospectus for buying, trading or otherwise dealing in equity shares of any other listed company.
(2) The dissenting shareholders being those shareholders who have not agreed to the proposal to vary the terms of contracts or objects referred to in the prospectus, shall be given an exit offer by promoters or controlling shareholders at such exit price, and in such manner and conditions as may be specified by the Securities and Exchange Board by making regulations in this behalf.
Section 27, The Companies Act, 2013 (Act 18 of 2013).
Made under this section, and citing it
8 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- G.S.R No. 37(E) Companies Prospectus and Allotment of Securities Amendment Rules 2023 dated 20.01.2023Rule 2023
- S.O. 325(E)_S.O. 325(E)-Commencement Notification dt 22.01.2021Rule 2021
- G.S.R. 642(E)-Companies (prospectus and allotment of securities) amdnt Rules 2020Rule 2020
- Companies (Prospectus and Allotment of Securities) Amendment Rules, 2019.Rule 2019
- Companies (Prospectus and Allotment of Securities) Third Amendment Rules, 2019Rule 2019
- Companies Prospectus and Allotment of Securities) Second Amendment Rules, 2019.Rule 2019
- Commencement Notification dated 09.02.2018Notification 2018
- Chapter III - The Companies (Prospectus and Allotment of Securities) Rules, 2014.Rule 2014
Questions about Section 27
What does Section 27 of the Companies Act deal with?
Section 27 of the Companies Act is headed "Variation in terms of contract or objects in prospectus". A company shall not, at any time, vary the terms of a contract referred to in the prospectus or objects for which the prospectus was issued, except subject to the approval of, or except subject to an authority given by the company in general meeting by way of special resolution: Provided that the de
How do I find court cases under Section 27 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 27, section 27 Companies Act, section 27 of the Companies Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 27 of the Companies Act, and has it changed?
The rules and notifications made under it are where it actually bites, and there are 8: most recently G.S.R No. 37(E) Companies Prospectus and Allotment of Securities Amendment Rules 2023 dated 20.01.2023 (2023), then S.O. 325(E)_S.O. 325(E)-Commencement Notification dt 22.01.2021 (2021), and 6 more.
When did Section 27 of the Companies Act come into force?
Section 27 of the Companies Act, cited as Companies Act 27, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.