2011 (1) TMI 1522 - Board - Companies Law

Summary

Issues involved: Induction of new promoter, reconstitution of the Board, investment by IL&FS group, completion of residential project, settlement of disputes, retention of management control.

Summary:
The Company Law Board, New Delhi, considered CA No.24/2011 regarding the induction of IL&FS group as the new promoter of MPL. The Union of India and existing Directors of MPL supported the application, which was also endorsed by the Hill County Owners' Association. After reviewing various affidavits and documents, the Board found that the application was in the best interests of the company and stakeholders. Consequently, the Board passed an order permitting IL&FS group to invest in MPL and reconstitute the Board. IL&FS group was directed to invest Rs. 20 lakhs in equity share capital, take over management control, mobilize funds, complete the residential project, settle liabilities, and retain a minimum equity stake for a specified period. The Board also mandated reporting requirements and cooperation from relevant entities for the implementation of the order. CA No.24/2011 was disposed of, and CP No.4 was rescheduled for a later date.