The Hindu Business Line : Plea for probe into Birla Corpn shareholding pattern dismissed

THE Company Law Board (CLB), on Monday dismissed the petition filed by a group of minority shareholders of Birla Corporation Ltd seeking an investigation into the shareholding pattern of the company.

"On overall appreciation of the facts of this case, I find no case has been made out to order an investigation and as such I dismiss the petition," the CLB Principal Bench comprising the Chairman, Mr S. Balasubramanian, noted.

The bench observed "that the estate of late Ms Priyamvada Birla, which is controlling majority of the shares in the company is intact and it has not brought about any change in the Board composition of the company. In other words, it is the estate of late Ms Birla which controls majority shares in Birla Corporation, and is found to be materially interested in the affairs of the company."

Besides, who is entitled to control the estate is an issue before the High Court for a decision and the provisions of Section 247 (1A) of the Companies Act cannot be invoked to determine it.

The minority shareholders collectively holding 0.0016 per cent shares in Birla Corporation had sought an investigation into the membership of the company for determining the true persons who are financially interested in the success or failure of the company, or who have been able to control or materially influence the policy of the company. They had also sought for an interim measure for imposition of certain restrictions on the shares held by East India Investment Co Pvt Ltd, Universal Cables Ltd, Birla Financial Corporation Ltd and others.

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