Tuesday, February 4, 2020
Is it ethical for Ratan Tata to keep the company values up and bring down Cyrus Mistri.
Group- 2: Shapoorji Pallonji Group holds 0.026%, Sterling Investment Corp holds 9.18% and Cyrus Investments holds 9.18%, collectively Shapoorji Pallanji
Group hold 18% of the equity share capital of the Company - Petitioners / Appellants
• Further, petition to be maintainable under section 241 of the Act ; the appellants need to fulfil the criteria of holding minimum 10% of the issue share capital of the Company as per section 244 of the Act. Here issue share capital means the equity + preference shares.
• However, After considering the preference shareholding of the Company, the Petitioners holding drops below the minimum threshold prescribed under Section 244 of the Act for maintaining an oppression and mis-management claim.
• The relationship between the 2 groups though not formally reflected in the Articles of Association but is based on the mutual trust and confidence which has given rise to a legitimate expectation of being treated in a mutually just, honest and fair manner and hence Tata Sons Limited can be called as a quasi-partnership-company, a concept well
recognized in company law jurisprudence.
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great content about the leadership
ReplyDeletevery informative.grt content..
ReplyDeleteKeep it up
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