Nominee Director Without Nominating Group Support Can’t Join Oppression & Mismanagement Petition | HC
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 28 September, 2023
Latest from Taxmann
Case Details: Priya Jain v. Laguna Holdings (P.) Ltd. - [2023] 154 taxmann.com 253 (HC-Delhi)
Judiciary and Counsel Details
-
- Sanjeev Narula, J.
- Harish Malhotra, Sr. Advocate, Rajiv Bahl & Vikas Tomar, Advocates for the Appellant.
- Darpan Wadhwa, Sr. Adv., Ms Ruby Singh Ahuja, Varun Khanna, Akshay Aggrawal, Vasu Singh, Ms Megha Dugar, Ms Aditi Mohan, Ms Neelakshi Bhaduria & Sidharth Aggarwal, Advocates for the Respondent.
Facts of the Case
In the instant case, there were two groups of shareholders in respondent No. 3 company, ‘DKJ’ Group and SKG Group, each group holding 50% of the share capital. DKJ died and was survived by three daughters and one son. During the lifetime of DKJ, his youngest daughter, the appellant, was appointed in respondent No. 3, as a nominee director on behalf of DKJ Group.
However, after the death of DKJ, the DKJ group withdrew the nomination of the appellant finding that she had started acting against the interests of respondent no. 3. The shares held by the appellant were also transferred to the wife of late DKJ.
As the said shares were not registered in the register of members of respondent no. 3 company, DKJ Group filed a petition under sections 111, 397, 398, 399, 402 and 403 of the Companies Act, 2013 claiming that SKG Group had been engaging in acts of oppression and mismanagement concerning respondent No. 3.
Subsequently, the appellant filed an application seeking impleadment and requested permission to file a counter affidavit to oppose the petition. This request was turned down by the CLB holding that the appellant need not become a party to the petition.
High Court Held
The High Court held that since the appellant’s shareholding in respondent nos 3 company stood transferred in favour of DKJ Group and the appellant no longer had the support of the nominating group, the appellant could not be allowed to implead in a dispute that involved DKJ group’s pursuit to defend their representation rights in respondent no. 3 company.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
