9911796707
TMI Blog2017 (8) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... only issue that has been raised by the First and the Third Objectors is that against the "scheme of consolidation of shares" a suit has been filed and a matter pertaining to probate of Will pending before the Hon'ble High Court of Madras is not a sufficient ground to reject the present application of the company. The objections raised by the objectors are devoid of merits and therefore, stand rejected. o fulfil the requirements under law, the Board of Directors has convened a meeting on 26.05.2016 wherein the Board decided for conversion of the applicant company from public to private and sought to convene an EoGM. The EoGM has been convened and conducted on 20.06.2016. Eleven out of 15 shareholders have participated. Out of the eleven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This is an Application that has been filed under Second Proviso to Section 14(l)(b) of the Companies Act, 2013 and the same has been numbered as C.P.No.5 of 2017, wherein it has been prayed that the applicant company is a public company and the same be allowed to change its status from public to private company. 2. At this juncture, there are three objectors. First Objector Mr. N. Sivaprasad has filed his objections stating that the 'consolidation of shares' which has happened during February 2016 is not in accordance with the law and the shareholders who are having less stakes have been paid and thrown out of the company and if the application of the company for conversion is allowed that would violate the rights of the Obj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ortionate share in the 'rights issue'. The company has come with an arrangement by filing an affidavit stating that it is open to provide protection to the Trust in relation to the 'rights issue' provided the Trust is willing to deposit the money equivalent to the proportion of its shares to get the 'rights issue' to the tune of ₹ 102.24 crores provided the probate of Will is granted by the Hon'ble High Court of Madras in relation to the estate of Dr.MAM Ramasamy (deceased). The probate of Will would make the Trust entitled to get its name entered in the Register of the Members of company to the extent of 71 equity shares with all consequential benefits. Therefore, the Trust is at liberty to decide the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04 shares of nominal value of ₹ 2,00,000/- each. It is made clear by the Applicant company that, in order to meet the pressing financial needs for further investing into the business, the company has resorted to rights issue for raising funds to the tune of ₹ 421.96 crores, that has been completed on 2.5.2016. 5. To fulfil the requirements under law, the Board of Directors has convened a meeting on 26.05.2016 wherein the Board decided for conversion of the applicant company from public to private and sought to convene an EoGM. The EoGM has been convened and conducted on 20.06.2016. Eleven out of 15 shareholders have participated. Out of the eleven shareholders, ten have consented and one dissented. The resolutions have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reater control over the operations and functioning of the petitioner company by its shareholders and its Board of Directors would be in a position to avail the privileges and exemptions granted to private companies under the Companies Act, 2013. 7. In view of the above, we allow the company petition by permitting the conversion of the company from public limited to private limited which is in the interest of the company with a view to carry on business more efficiently and effectively under the provisions of the Companies Act, 2013 and the same is not going to cause any prejudice to the members or the creditors of the company. Accordingly, the CP is disposed of with a direction to give effect to the conversion of the company from public ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
