Mansukhani stake purchase battle goes to shareholders' court

J C Mansukhani holds a 28% stake in Man Industries, his elder brother holds 29-30%

J C Mansukhani, chairman and managing director of Man Steel & Power, has convened an extraordinary general meeting (EOGM) of the shareholders of Man Industries on July 25 to vote against elder brother R C Mansukhani, Man Industries’ chairman and managing director. “Yes, we have convened an EOGM on July 25 to seek shareholders’ views. Let shareholders decide on the company’s fate,” said J C Mansukhani.

While J C Mansukhani holds a 28 per cent stake in Man Industries, his elder brother holds 29-30 per cent.

Earlier, R C Mansukhani had sought interim relief from the civil court, Borivli (Mumbai), on his younger brother’s call for the EOGM. The court refused on the grounds that J C Mansukhani was empowered to convene such a meeting.

The court said J C Mansukhani had followed all norms to convene the EOGM. “Considering all facts and circumstances, as well as observations and orders passed by the Company Law Board, it appears prima facie, Man Industries failed to show R C Mansukhani complied with the terms and conditions incorporated in the Companies Act. On the contrary, prima facie, the record shows at the time of filing the requisition in January, J C Mansukhani had complied with all conditions. However, in pursuance of the said requisition, the company failed to call an extraordinary general meeting. Thus, it appears the plaintiff failed to make out the prima facie case to grant ad-interim relief,” the order said.

In May, the Company Law Board had ordered J C Mansukhani to offer his stake to R C Mansukhani by the end of August, at the current prevailing price. In case, R C Mansukhani didn’t agree to the stake purchase, he had to offer his stake to his younger brother.

Earlier, the Company Law Board said Man Industries’ employee stock ownership plan, through which the company had issued 2.664 million shares to its employees, didn’t comply with norms.