Uwb Moves Clb Over Stake Notice Failure Of Shareholders

The Satara-based United Western Bank (UWB) has filed an application with the Company Law Board (CLB), western bench, Mumbai, against Ashish Makharia and others for allegedly acquiring shares in excess of five per cent of the bank's paid-up capital without intimating it.

The bank has contended that this was a violation of the Securities and Exchange Board of India regulation governing substantial acquisition of shares and takeover.

Makharia is a share holder in UWB). The bank, in a notice to the Bombay Stock Exchange (BSE) today, said it had filed an application against Ashish Makharia and others with the CLB under Section 111A (3) of the Companies Act, 1956, on March 5, 2002.

 

The respondents in the UWB application are -- Ashish Makharia, Maliram Makharia Surgicals Pvt Ltd, Maliram Makharia Investment Co Pvt Ltd, Parmeshwari Fabrics Pvt Ltd, Mahadev Fabrics Pvt Ltd, Maliram Makharia Finstock Pvt Ltd and Ramesh Ranga and Maliram Makharia Securities Ltd.

It may be recalled that the CLB, on March 15, 2002, had ordered that the 8.15 per cent stake held by the bank's employees equity trust be frozen.

The board said these shares should not be counted and taken into account during the annual general meeting for voting.

It also put on hold all corporate benefits (dividends/rights/bonus) in respect of these shares held by the Trust.

Ramesh Ranga, the petitioner, had also filed a petition under Section 111A of the Companies Act against the UWB. He contended that the transfer of 25,39,329 shares by the bank in favour of the two unions and the equity Trust was illegal as the contracts between them had violated the provisions of the Securities Contracts (Regulation) Act, 1956, and it was also in contravention of Article 3A of the Articles of Association of the bank.

The shareholding in the bank is widely dispersed with the promoters holding a 0.25 per cent stake. Mutual funds and Unit Trust of India together hold 0.02 per cent; banks, financial institutions, insurance companies (3.51 per cent); private corporate bodies (23.94 per cent); public (63.73 cent); non-resident Indians/overseas corporate bodies (0.40 per cent) and trade unions (8.15 per cent).