At first, India’s law minister Kapil Sibal vehemently denied owning any shares in Anant Media, the company that ran Tehelka magazine. "I don't even have a single share, no share has ever been allotted to me. I have never applied for a share in Tehelka," Sibal was quoted saying initially clarifying social media reports that he owned a majority stake in the company.
However, the filings of the company for several consecutive years show that he holds shares. According to the latest shareholding pattern as on September 29, 2012 Kapil Sibal is listed as shareholder number 14. The filing says he holds 80 shares worth Rs 800 which amounts to 0.04 per cent in the company. His address is given as AB-7, Purana Qila Road. His father’s name is listed as Hira lal Sibal.
“I don’t even know that Tarun issued shares in my name. I had donated Rs 5 lakh to Tehelka in good faith, but I never filled any application for share allotments,” Sibal told Firstpost.com, a business news portal on Thursday.
So, now the statement got a bit nuanced. He says that he gave the money. The shares might have been issued. But, he never applied for these.
According to companies act provisions, a person has to apply in writing to subscribe to shares of a company. “Be it an Initial Public Offering, rights issue or private placement, they all need to be subscribed for. Without an application nobody can become a member of the company. The company could not have issued shares without such an application,” said a senior company law expert.
Only case in the law where shares can be issued without application is a bonus issue, he added.
Since Sibal said he has not signed any application for allotment and a bonus issue could not have been made unless he already owned the shares, how did the company issue him shares and entered his name and details in its register?
Did Anant Media violate company law provisions by issuing shares to a person who did not subscribe to these?
Or, were the share applications forged? Who did it then?
If somebody misused his name or signature or both, should Sibal not be moving quickly and ask the company to rectify these filings and get his name removed from Anant Media’s shareholders/members register?
Has he taken any steps in this direction?
After all, Sibal is not any average Joe who needs a lawyer to tell him what provisions to invoke.
He is the famous Supreme Court lawyer.
He is the country’s law minister.
