NCLT reserves order on petitions filed by Mistry’s firms
Mumbai, Feb 20 (IANS) A top corporate tribunal on Monday reserved its orders on the maintainability of petitions filed by Cyrus Mistry’s investment companies against Tata Sons.
The National Company Law Tribunal (NCLT) reserved its order on maintainability of the petitions filed by the two firms — Cyrus Investment and Sterling Investment Corp — till March 6, 2017.
Earlier, the National Company Law Appellate Tribunal ruled that the issue of maintainability of petitions will have to be heard and disposed off first before the case can proceed any further.
The issue of petitions’ maintainability assumes importance as according to the Companies Act shareholder needs at least 10 per cent of the total share capital of the company.
The holding company of the industrial conglomerate Tata Group argued that the two firms hold more than just two per cent of the the total issued share capital of Tata Sons.
Under the Act, NCLT can waive the requirement for a petitioner to hold at least 10 per cent of the total issued share capital of the company.
On October 24 last year, Tata Sons’ Board ousted Mistry as its Chairman and appointed Ratan Tata as Interim Chairman.