NCLT rules out Cyrus Mistry's petition against Tata Sons
Advertisement
National Company Law Tribunal (NCLT ) has ruled that Cyrus Mistry ’s petition is not maintainable, saying that his family firms are not qualified to file a petition alleging mismanagement of Tata Sons and oppression of minority shareholders.
"The petitioners have failed to convince the court that the application is maintainable," said B.S.V. Kumar, presiding member of NCLT. As per rules of the Companies Act, 2013, shareholder needs at least 10% to file a petition in the NCLT. Mistry's family firms - CyrusInvestments Pvt Ltd and Sterling Investments Pvt Ltd - hold only 2.17% shares of the total share capital (equity + preference shares) of Tata Sons .
Whether or not the requirement can be waived will be decided on 7th March.
It was in December 2016 that Mistry had filed a petition alleging oppression of minority shareholder rights and mismanagement at theTata Group .
In case NCLT waives the requirement, Tata Sons could challenge it in National Company Law Appellate Tribunal (NCLAT), because by law, this kind of waiver has to be sought before a petition is filed. In case NCLT rules against a waiver, Mistry could go to court against today's ruling and also on the waiver petition.
In October last year, Mistry was removed as the chairman of Tata Sons, leading to a public spat between Mistry and Tata Group. While the group said that Mistry was not a good leader, he accused Tata Sons poor corporate governance practices.
Also read: Tata Group under scrutiny: Apex body of Chartered Accountants looking at alleged accounting irregularities at Tata companies
He then went on to file a 344-page petition, in which he shared the minutes of several board meetings, details of business deals and emails, which, as per Tata Sons was making 'confidential and sensitive' information public. Tata Sons in turn filed a complaint against Mistry with the Securities and Exchange Board of India (SEBI).
(Image source)
Advertisement
"The petitioners have failed to convince the court that the application is maintainable," said B.S.V. Kumar, presiding member of NCLT. As per rules of the Companies Act, 2013, shareholder needs at least 10% to file a petition in the NCLT. Mistry's family firms - Cyrus
Whether or not the requirement can be waived will be decided on 7th March.
It was in December 2016 that Mistry had filed a petition alleging oppression of minority shareholder rights and mismanagement at the
In case NCLT waives the requirement, Tata Sons could challenge it in National Company Law Appellate Tribunal (NCLAT), because by law, this kind of waiver has to be sought before a petition is filed. In case NCLT rules against a waiver, Mistry could go to court against today's ruling and also on the waiver petition.
Advertisement
Also read: Tata Group under scrutiny: Apex body of Chartered Accountants looking at alleged accounting irregularities at Tata companies
He then went on to file a 344-page petition, in which he shared the minutes of several board meetings, details of business deals and emails, which, as per Tata Sons was making 'confidential and sensitive' information public. Tata Sons in turn filed a complaint against Mistry with the Securities and Exchange Board of India (SEBI).
(Image source)
Advertisement
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market