TaxTMI 
TaxTMI 
2018 (10) TMI 340
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....Directors of Respondent No.1 company, comprising of R2 to R8, be suspended with immediate effect and 10(ten) persons be appointed as directors in terms of provisions of Section 242(2) (k) of the Act, to manage the affairs of the R1 company and its group companies through their nominees, and such directors may report and function under the Hon'bie Tribunal on such matters as it may direct. 2. That the Board of Directors appointed by the Hon'ble Tribunal in terms of 242(2)(k) of the Act be authorised to replace such number of directors of subsidiaries, joint ventures and associate companies as may be required to make the R1 and its group companies as going concern." 2. From the side of the Central Government, duly authorised offi....
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....f the Shareholder Percentage Holding 1. Life Insurance Corporation of India 25.34% 2. ORIX Corporation - Japan 23.54% 3. IL&FS Employees Welfare Trust 12% 4. Abu Dhabi Investment Authority 12.56% 5. Housing Development Finance Corporation Limited 9.02% 6. Central Bank of India 7.67% 7. State Bank of India 6.42% 8. UTI- Unit Linked Insurance Plan - UTI Asset Management Company Limited 0.82% 9. India Discovery Fund 0.86% 10. Others 1.77% TOTAL 100% 5. That the Petitioner submits that the R1 during the financial year 2017-18 has 169 group companies out of which, 24 companies are direct subsidiaries, 135 companies are indirect subsidiaries, 6 companies are joint ventures and 4 companies are associat....
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.... Officer and Company Secretary respectively. The allegation is that the Managerial persons are responsible for negligence and incompetence. According to the allegations, a rosy financial statement was projected. He has further emphasized that the directors of Rl have failed to discharge their fiduciary duties which is based on mutual trust and confidence. It is informed that to unearth the irregularity and for investigation, the provisions of Section 212 (1) (c) of the Companies Act were invoked for investigation into the affairs of the company. 6.1 He has further stated that ROC has conducted an enquiry under Section 206 of the Companies Act, 2013 and prima facie concluded that mismanagement and compromise in corporate governance norms an....
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....of likelihood of collapse thus expressed immediate further necessary action by the Ministry of Corporate Affairs under the Companies Act, 2013. For ready reference the said "Office Memorandum" bearing NO.10/41/SM/2018, dated 30.9.2018 of the Adviser (FSRL), Ministry of Finance, Department of Economic Affairs is reproduced below: "The Department of Economic Affairs has been watching the developments in the financial market arising out of default by IL&FS Group. The matter has been examined from the point of the financial stability angle, considering the systemically important nature of the IL&FS Group, the impact on the debt, money and capital markets. A note has been prepared pointing out the deleterious effect of financial defaults by th....
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....ssions and after considering the facts of the case, as narrated in the Petition filed by the Union of India, this Bench is of the considered view that it is judicious to invoke the jurisdiction prescribed under Section 241(2) of the Companies Act, 2013 and the Tribunal is of the opinion that as per Section 242 (1) of the Companies Act, 2013, the affairs of the IL&FS were being conducted in a manner prejudicial to public interest. The interim prayer of suspending the present Board of Directors and reconstitution of the new Board of Directors is hereby allowed. At present, by an additional affidavit only 6 names (supra) of the Board members have been proposed by the Union of India. 8.1 Further directed that the present Board of Directors be ....