At the outset, embattled state of affairs can be dispelled with rectitude and mettle. FTIL toughly rebutted the Ministry of Corporate Affairs’ petition seeking supersession of the present board of directors of FTIL. Also, the Company Law Board (CLB) hearing that was to take place on 3rd March, 2015, was stayed a day before, stating that it would be heard by the court on 4th March, 2015, and no action will be initiated until then, according to the news reported by Business Standard on 2nd March, 2015.
Further developments ensued, when the hearing took place before the court on 4th March, 2015; the court adjourned the hearing till 11th March, 2015 which has been further extended till March 16. In other words, the hearing for the petition filed by FTIL to stop the elimination of its board of directors, making FMC a party, will be heard on 16th March, 2015.
On 1st March, 2015, Sunday, in the FT board meeting, a resolution was passed to oppose MCA’s petition to CLB seeking supersession of FTIL board strongly, terming it to be a clear attempt by MCA to render ineffective approach, and actually overthrow FTIL’s challenge and opposition to the proposed amalgamation of NSEL with FTIL.
“After considering on the matter and also considering that the issue is totally prejudice, mala-fide and not in the interest of FTIL its Board, its employees, its shareholders and other stake holders, we have decided to contest all issues raised by Union Of India vigorously as per the law of the land.”
Also, in the meeting, it was made clear that the material act of the new board since their joining has been its resolve to oppose the draft order and the proposed forced amalgamation by MCA, alluding such allegations of ‘mismanagement’ to be seemingly mala-fide and deserve to be challenged.
On the occasion, Mr.Venkat Chary, acting Chairman, FTIL, said, “After considering on the matter and also considering that the issue is totally prejudice, mala-fide and not in the interest of FTIL its Board, its employees, its shareholders and other stake holders, we have decided to contest all issues raised by Union Of India vigorously as per the law of the land.” He further added that as the Board is competent enough to deal with the current situation, the company will file a petition before the Honourable Bombay High Court or the Company Law Board or at any other appropriate forum as it deems fit.
In the meeting, It was further resolved that it is inequitable to seek replacement of the entire board since four legal suits are sub judice, which includes the representative suit, fit and proper and writ petition filed opposing amalgamation of NSEL with FTIL, as per the FTIL’s press note published on BSE website on 2nd March, 2015.
FT also added in their press note that the board strongly believes that it has acted prudently in the larger interest of over 63000 shareholders.
It was further stated by the court that FTIL and its lenders are yet to file a reply to the MCA by 4th March, 2015, stating why the NSEL-FTIL merger should not take place. FT has endeavoured to ply forward with grit to whittle out a trajectory, to legitimately protect the interests of all the shareholders, employees and other stakeholders.
Now, as per the latest developments that took place on 4th March, 2015, the stay is retained by the court till 11th March, 2015; the objective is to restrain the government, and seek reply from the ministry of corporate affairs.
(Source 1 – 1. http://www.business-standard.com/article/markets/ftil-opposes-mca-s-petition-to-clb-for-removal-of-ftil-board-in-court-115030200113_1.html