NCLAT grants waiver to Cyrus Mistry firms from minimum shareholding criteria

Delhi's National Company Law Appellate Tribunal (NCLAT) on Thursday granted waiver to the Mistry firms from minimum shareholding criteria and a liberty to approach Mumbai's NCLAT.

It is to be noted that the chambers of Finance Minister Arun Jaitley and Bakshi represented Mistry.

Following the order, the Mistry firms can now move the NCLAT, Mumbai to make a case of oppression and mismanagement.

The National Company Law Appellate Tribunal had on July 24 reserved its judgement on pleas filed by ousted Tata Sons Ltd Chairman Cyrus Mistry against the company.

One petition is related to the minimum share holding requirement for filing the case against Tata Sons and the other is related to alleged mismanagement and oppression of the minority shareholder.

Mistry had approached the appellate body after the Company Law Tribunal Board dismissed his original plea in March, as his two companies - Cyrus Investments Pvt. Ltd. and Sterling Investments Pvt. Ltd. - did not have the minimum 10 per cent shareholding required to file the petition.

Though the two firms hold 18.4 per cent of ordinary shares in Tata Sons, this comes down to 2.17 per cent after preference shares are taken into account.

Mistry had argued in the tribunal's appellate body that preference share should not be counted for calculating the minimum shareholding needed to file a petition with the tribunal.