Financial Daily from THE HINDU group of publications
Tuesday, Sep 14, 2004
Financial Daily from THE HINDU group of publications Tuesday, Sep 14, 2004 |
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Corporate
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Corporate Disputes Birla Corp minority shareholders move CLB Richa Mishra
New Delhi , Sept. 13 A SECTION of the minority shareholders of Birla Corporation Ltd has approached the Company Law Board (CLB) against the current management of the company. Just days ahead of the company's annual general meeting (AGM), the shareholders have filed two petitions before the CLB. Apart from an application alleging mismanagement and oppression, the shareholders have also sought investigations into the shareholding pattern of the company. The first pertains to an allegation that the affairs of the company are being conducted in a manner oppressive to them. Additionally, they have also sought from the CLB, appropriate orders by way of relief, on the ground that a material change has taken place in the management or control of the company, as a result of which the affairs of the company could be conducted in a manner prejudicial to its interests . The second has sought an investigation into the ownership of the company and imposition of restrictions upon shares and debentures besides prohibition on its transfer. According to sources, Birla Corporation too has taken precautions against such a move by minority shareholders and has written to the CLB on the issue . Sources further reveal that out of 7.75 crore shareholders, a total of 1,050 shareholders have filed the petition before the CLB. The company's AGM is scheduled for September 15.
Key to the controversy?
THE phenomenon of a section of minority shareholders of Birla Corporation moving the Company Law Board is an obvious offshoot of the Mrs Priyamvada Birla's will case that is being keenly contested for its authenticity in the Calcutta High Court. Watching from the wings as the drama unfolds is a silent bystander, who may well be the key to the entire controversy - Dr V. Gaurishankar, Senior Advocate of Supreme Court. Close associate of M.P. Birla and Mrs Birla for almost four decades and author of M.P. Birla's biography, published in the early nineties, Dr V. Gaurishankar is director, trustee or member of the managing committee in almost every M.P. Birla concern. Priyamvada is said to have depended on him to ink the final legal decisions that she took regarding her companies, trusts and personal decisions. According to informed sources, he was the one who drafted the trust deed of the M.P. Birla Foundation and could very well be the architect of the much-vaunted will that is taking centrestage attention today. In fact, after he retired as additional secretary, Ministry of Finance in 1979 and became a practising advocate at the Supreme Court, he has been the family's legal advisor in personal as well as company matters.
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