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Section 27 of Companies Act 2013: Variation in terms of contract or objects in prospectus (1) Acompanyshall not, at any time, vary the terms of a contract referred to in theprospectusor 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 : Providedthat 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 clearly indicating the justification for such variation: Provided furtherthat such company shall not use any amount raised by it through prospectus for buying, trading or otherwise dealing in equitysharesof any otherlisted 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 bypromotersor controlling shareholders at such exit price, and in such manner and conditions as may be specified by theSecurities and Exchange Boardby making regulations in this behalf. Snapshot from study notes of the ixamBee SEBI course covering topic in crisp and easy to remember format
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