Financial Daily from THE HINDU group of publications
Tuesday, Sep 28, 2004
Regulatory Bodies & Rulings
CLB orders BPL Comm not to change shareholding pattern
New Delhi , Sept. 27
BPL Communications Ltd has been directed by the Company Law Board (CLB) to maintain a status quo in shareholding pattern of the company.
Considering a petition filed by Mr T.P.G. Nambiar, promoter and Chairman of the BPL group and three group companies, the board also allowed them statutory inspection into the books of BPL Communications and other companies.
These include Epsilon Advisors Pvt Ltd, Surya Samundra Finance and Investment Pvt Ltd, Vectra Holding Pvt Ltd, BPL Mobile Communications and BPL Mobile Cellular Ltd.
Mr Nambiar and others were challenging acquisition of shares by Mr Rajeev Chandrashekar, Chairman of BPL Mobile, in BPL Communications.
The petitioners submitted that the shareholding pattern of BPL Communications has been manoeuvred in such a way that Mr Chandrashekar holds controlling interest of 32 per cent in the company.
BPL Communications is the holding company for the group's cellular business. The petitioners also expressed apprehensions that Mr Chandrashekar would sell off the communications business.
At the hearing, the CLB Principal Bench comprising the Chairman, Mr S. Balasubramanian, said that none of the main respondents were present at the hearing.
The petition was filed under Sections 397/398 of the Companies Act dealing with oppression and mismanagement of affairs of the company.
Members of a company can apply to the CLB if they feel that the affairs of the company are being conducted in manner oppressive to any member or members. An application can be moved under Section 397 of the Companies Act.
Under Section 398, a complainant can move the CLB for relief in case of mismanagement.
It envisages that any member of a company with an equity stake can approach the board if they find that a material change has taken place in the management or control of the company, whether by an alternation in the board of directors or in ownership of the company's shares.
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