Common or ordinary shares represents a fractional ownership in the company issuing these; as an owner, the shareholder gets a vote in the company's major decisions proposed its shareholder meetings. It is important to remind ourselves regarding this, because the draft red herring prospectus filed by Tamilnad Mercantile Bank Limited (TMB), proposing to issue ordinary shares, does not have the ability to convene a shareholder meeting without the consent of the High Court of Madras. This as the draft document states “limits (the banks) ability to obtain approval of (its) shareholders in a timely manner, or at all.”
This is the first risk factor.
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