CLB says no to Birla Corp probe

Who is entitled to control the estate of MP Birla group flagship company Birla Corporation or who will control or materially influence the p...

Who is entitled to control the estate of MP Birla group flagship company Birla Corporation or who will control or materially influence the policy of the company?

The Company Law Board (CLB) on Monday dismissed a petition filed by shareholders of M.P. Birla group flagship Birla Corporation on who will control or materially influence the company.

Rejecting the petition filed by shareholders seeking a probe under Sections 247 and 250 of the Companies Act, CLB Chairman S. Balasubramanian left it to the Calcutta High Court to decide on the management and control issues.

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‘‘The estate of the late Priyamvada Birla, controlling majority of the shares in the company are intact and that the said estate has not brought about any change in the composition of the board of directors of the company.’’

‘‘Who is entitled to control the estate is an issue before the High Court for a decision and provisions of Section 247(1A) cannot be invoked to determine the issue,’’ he said.

On another petition alleging oppression and mismanagement by the current management, CLB posted the matter to August 17.