Not Without A Fight
SREI Group v/s RBI @ Bombay HC
A couple of days ago we wrote about how the RBI had decided to supersede the board of some companies of the SREI Group. This included SREI Infra Finance and SREI Equipment Finance Limited.
Well, these companies have now filed a writ petition in the Bombay High Court, seeking a stay on this RBI order.
The petition says that the RBI has acted hastily in superseding the board and that this was done "entirely arbitrarily and without application of mind".
Problems at SREI had been going on for some time now.
Back in April, the RBI had asked the companies to put in Rs 2,000 crores to shore up their capital positions. They were also ordered to stop all new lending and focus on fixing what was broken. This was taking time, so in September, the companies requested the RBI for a timeline extension, but this was denied. 10 days later the central bank superseded the board of directors of these companies.
Zee goes to NCLAT
The fight between Zee Entertainment Limited (ZEL) and its institutional shareholders is continuing too - and the next round will be before the National Company Law Appellate Tribunal.
Two large institutional shareholders of ZEL, Invesco Developing Markets Fund and OFI Global China Fund want to remove MD& CEO Punit Goenka and some other directors from ZEL.
To vote on this, they asked the company to hold an extraordinary general meeting (EGM) of shareholders. But the directors of ZEL decided that this EGM was not needed, so they said no to the 2 shareholders. The matter then went to the NCLT, which gave ZEL a few days to respond with the reason as to why they said the EGM is not needed.
Instead of using the time they had to come up with a reply, ZEL's lawyers have appealed in the NCLAT, saying they haven't been given enough time to respond. 🙈