NCLAT allows waiver plea of Mistry's two firms

NCLAT allows waiver plea of Mistry's two firms”

The change in legal status of the company would restrict Tata Sons' shareholders such as Mistry's Pallonji group, which holds 18.4 per cent equity shares in the company, from selling the shares to external investors. NCLAT however upheld the dismissal by NCLT of the Mistry plea on grounds of maintainability. The appellate tribunal accepted the plea for waiver of a condition under the 2013 Companies Act that had precluded it from filing such a complaint against Tata Sons.

Mumbai: Tata Sons, the promoter of the $105 billion cars-to-software group, on Thursday won shareholders' nod to convert itself into a private limited company, limiting in effect Cyrus Mistry family's ability to sell their stake to outsiders.

The petition filed by investment companies Cyrus Investments Pvt Ltd and Sterling Investment Corporation Pvt Ltd of Mr. Mistry alleged mismanagement and oppression of minority shareholders by Tata Sons, Ratan Tata and the directors of the holding company of the diversified conglomerate. "We will continue to pursue complete transparency of group for shareholders gain", it added.

The litigation was initiated after Mistry's removal as chairman of Tata Sons on 24 October past year.

Following the order, the Mistry firms can now move the NCLAT, Mumbai to make a case of oppression and mismanagement.

The shareholders' approval to Tata Sons becoming a private company was the latest blow to ousted Tata Sons Chairman Cyrus Mistry, who ran a relentless campaign in the runup to the annual general meeting (AGM) to get the proposal vetoed.

There are more than 10 individuals including former employees who own preference shares in the holding company. A petitioner is required to hold at least one-tenth of the issued share capital of a company or represent 10 percent of the total number of members to take up such a case at the NCLT.

Last week, a Tata Sons spokesperson had stated: "The reinstatement of Tata Sons as a private company was considered by the board to be in the best interest of the company". But Tata Sons had pointed out that issued share capital included preference shares and that Mistry firms thus had only 2.17 per cent, way short of the minimum 10 per cent.

A report in the Economic Times said that the firm going from public to private will hurt Mistry the most as it will substantially reduce the powers of its shareholders.

Like this


21 September 2017
Tax reform must be a priority
Our federal tax code has eroded family wealth every year ever since our family pursued the American dream to own a business. This complicated tax code combined with extra layers of additional taxes makes it increasingly harder to make it in America.

21 September 2017
(TDS), Live Nation Entertainment, Inc. (LYV)
In other news, Director Ariel Emanuel sold 10,000 shares of the firm's stock in a transaction dated Thursday, September 14th. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink .

21 September 2017
Pulling Back the Layers on Dominion Diamond Corp (DDC)
Howard Capital Management holds 34,082 shares or 0.18% of its portfolio. 7,802 shares were sold by Walker Karen , worth $244,125. It improved, as 81 investors sold CSCO shares while 635 reduced holdings. 54 funds opened positions while 111 raised stakes.

21 September 2017
CAT 2017 online registration deadline extended till Sep 25
A valid and unique mobile number must be presented at the time of registration for verification purposes. However, there will be no further extension, he clarified.

21 September 2017
Darden Restaurants Sees Unusually High Options Volume (DRI)
ValuEngine raised shares of Darden Restaurants from a "hold" rating to a "buy" rating in a report on Friday, September 1st. It also upped Johnson & Johnson Com Us$1.00 (NYSE:JNJ) stake by 9,165 shares and now owns 37,826 shares. (NYSE:PKE).

21 September 2017
Khamenei censures Trump's anti-Iran remarks as "ugly"
"The foolish, very ugly, and ignoble speech of the USA president, with its gangster and cowboy language full of sheer lies, is rooted in their anger, frustration, and light-headedness", Ayatollah Khamenei said in a meeting with members of Iran's Assembly of Experts in Tehran on Thursday.

21 September 2017
AIA extends role in Australian, NZ life-insurance markets
The transaction is expected to be completed in 2018, and make AIA the biggest life insurer in both Australia and New Zealand. The sale follows similar moves by rivals ANZ and National Australia Bank to cut their exposure to wealth management.

21 September 2017
Workers at Canadian mining company protest in Athens
Differences between Greece and the Canadian miner have dragged on for years, mainly over compliance with environmental regulations.

21 September 2017
WESPAC Advisors LLC Takes Position in Enterprise Products Partners LP (EPD)
Analysts await Johnson & Johnson (NYSE:JNJ) to report earnings on October, 17 before the open. 111,712 are owned by Green Square. However yesterday the stock remained in between $26.06 and $26.25. 21,751 were reported by Violich Capital Mngmt Inc.

21 September 2017
Charles Barkley 'Angry' the NBA Reduced Back-to-Backs
It should improve the fan experience both at home and for paying customers at events. He continued, per Sefko : "Making $30-, $40-million a year".