Assocham has also suggested that in case of listed companies, the residual minority of 25 per cent need not compulsorily sell their share.

``They should have the option of selling the shares to the majority group at the prescribed price,'' it said in a paper on reforms of company law to be presented at the two day all India tax and company law conference. It also said "in view of the conditions of the capital market, the limit for buyout be lowered to 75 per cent".

The paper notes that under the clause 289 of the Companies Bill, in the event of any person or group of persons acquiring 95 per cent majority, such persons or group shall notify the company of their intention to buy the remaining equity shares.

Assocham has also suggested withdrawal of the provision restricting Indian corporates from adopting a multilayer system ofsubsidiaries which would inhibit the growth of companies in the infrastructure sector.