Financial Daily from THE HINDU group of publications
Wednesday, Apr 06, 2005
Financial Daily from THE HINDU group of publications Wednesday, Apr 06, 2005 |
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Corporate
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Corporate Disputes AAIFR stays equity allotment by SS Organics Our Bureau
Hyderabad , April 4 IN a petition by non-resident Indian (NRI) co-promoter of SS Organics Ltd., a pharma formulation and intermediaries company, the Appellate Authority for Industrial Financial Reconstruction (AAIFR) has declared issue of new shares as null and void. Addressing a press conference here, the legal counsel for Mr Subba Reddy, the NRI promoter, Mr N. Harinath Reddy and Mr S. Chidambaram, a practising Company Secretary, said that they have communicated the AAFR order to the SEBI and stock exchanges about the stay of allotment of fresh shares. They said it was felt necessary to alert the investors about the possibility of further complications if they subscribe to fresh share offer, which have been declared void. Mr Harinath Reddy said that the NRI at one time had about 33 per cent share in the company equity. However, with the Managing Director of SS Organics, Mr V.N. Sunanda Reddy, making an application with the BIFR seeking their consent for additional capital infusion, this has changed significantly over the last year. Consequently, while the overall share capital has gone up significantly with the issue of fresh equity, the shareholding of Mr Subba Reddy had come down to about 13 per cent. This was without proper shareholders consent, they contend.
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