The Hindu Business Line : Appointing commissioner to review records — Birla Corp minority shareholders' plea turned down

THE Company Law Board (CLB) today rejected the request of minority shareholders in Birla Corporation Ltd (BCL) for appointment of a local commissioner to authenticate the records of the company as well as the entities holding shares in it.

The Board, however, said that the shareholders should be allowed to inspect those statutory records of BCL that they are entitled to within 10 days of their making a request.

While disposing of an interim application moved by the minority shareholders, the CLB Principal Bench, comprising Chairman Mr S. Balasubramanian, observed that, "As is seen from the application itself the relief has been sought on the apprehension of the petitioners that the records might be manipulated. No interim relief can be granted on apprehensions."

The Bench also directed the respondent companies to file affidavits clearly indicating every change that has taken place in the shareholding, directorship or trusteeship in these entities as well as the changes that have taken place in their shareholdings in BCL.

The minority shareholders had approached CLB for appointment of a local commissioner, who may be directed to inspect the records maintained by the company and entities holding shares in it.

The inspection was sought with particular reference to changes in the board of directors in case of the companies and changes in the trustees/members of managing committee or members of the society in case of charitable societies since 1998-99. They also requested for inspection of share transfer registers and deeds as well as papers relevant to transfer and transmission of shares since July 2004.

The petitioners also wanted documents relating to annual general meeting of Birla Corporation on September 15 to be inspected. Alleging instances of manipulation of records of some of the respondent companies/societies either in relation to composition of the Board of Directors/Trustees of these entities or in the shareholding of these entities with the view to control them, the petitioners sought the interim relief.

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