Valli Arunachalam, ‘karta’ of MV Murugappan Hindu Undivided Family (HUF), who has been denied a board seat in the holding organization Ambadi Investments (AIL), on Wednesday took the matter to court.
The MVM family members — comprising Valli, her sister and their mother — moved the Chennai bench of National Company Law Tribunal (NCLT) searching for waiver of the minimum 10% shareholding essential to make certain the alleged oppression and mismanagement case against AIL is maintainable. It also sought board representation or alternately that its 8.21% stake in AIL be purchased out.
Counsel to the MVM family members pointed out its 8.21% stake in AIL, falls quick of the essential 10%, adding the NCLAT had granted a comparable waiver to Cyrus Mistry’s firms in his case against Tata Sons.
The application for the waiver was filed below Section 244 of the Companies Act, 2013 (Companies Act) study with Rule 83A of the National Company Law Tribunal Rules, 2016.
The MVM family members has alleged deliberate non-disclosure of info, suppression and mismanagement in the management of affairs at AIL. Valli, daughter of the Rs 38,000-crore Group’s late chairman MV Murugappan, has mentioned it is unfair to be discriminated against and denied representation and a management part,on the grounds of gender.
The petition also alleges that the structure and manner of holding of some of the organizations has been altered with no the consent of the petitioners, with no them becoming informed and with malafide intent to partition the group organization-smart.
The MVM family members points out that the shareholding of the Muruguppa Group is fragmented with none of the respondents — inter alia family members members also directors in AIL, owning more than 10%. Apart from the MVM family members, all identifiable branches have position on the board and participate in affairs of AIL. Moreover, the MVMfamily ahs not been presented a fair value for its 8.21% stake.
In Septmeber 2020, the AIL shareholders, comprising largely family members members, voted against the resolution to appoint Valli a non-executive director with 91.36% of votes cast against her appointment. Valli sent a legal notice to the Murugappa group and the family members members.Under the Hindu Succession (Amendment) Act, 2005, girls can grow to be the karta or head of the family members and daughters can grow to be coparceners and inherit as significantly as sons.