NCLT refrains Byju's Aakash Institute from tinkering with minority shareholders rights
National Company Law Tribunal (NCLT) on Wednesday passed an order refraining the Think & Learn subsidiary Aakash Institute from amending the company’s articles of association (AoA) which sought to remove the rights of minority shareholders.
On Tuesday, the minority shareholders of Aakash filed a mismanagement and oppression petition against the current management of the entity.
According to the counsel representing the minority shareholders, the extraordinary general meeting (EGM) which was to be held on Wednesday, sought to remove their rights while conferring special rights on the major shareholder Ranjan Pai’s Manipal Education and Medical Group which currently holds about 40% stake in Aakash.
“A 40% shareholder is denying my rights despite my name being in the shareholder register,” said Supreme Court Bar Association president and senior advocate Kapil Sibal who is representing global private investment firm Blackstone. “Their (Manipal) intent is simple. Once they get part B (reserved rights) removed, then they are free to increase the share capital of the company, reducing my 7% to 0%,” Sibal added.
The counsel for Manipal said that the reserved rights flow to minority shareholders from the merger framework agreement (MFA) between Byju's parent company, Think & Learn, and Aakash.
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