Tuesday, July 10, 2018

Tribunal dismisses arguments on alleged mismanagement in AirAsia

Mumbai: Rejecting the petition of Cyrus Mistry and his family firms against Tata Sons alleging oppression of minority shareholders, the Mumbai bench of the National Company Law Tribunal (NCLT) on Monday also dismissed his arguments in relation to alleged mismanagement in AirAsia.
The Mistry faction at the time of the hearings at the NCLT had alleged that directors of AirAsia India, including R Venkataramanan, were approving related-party transactions without reviewing any details or verifying the commercial terms. It was also alleged that Venkataramanan, the managing trustee of Tata Trusts, did not heed repeated warnings about the goings-on in Air Asia India by a company official.

AirAsia India is an equal joint venture between Tata Sons and Tony Fernandes-led Air Asia Investment, with Tata Sons holding 49% stake in the company and the other 49% held by AirAsia Investment. The remaining 2% is held by two directors on the board of AirAsia India. R Venkataramanan holds 1.5% stake and S Ramadorai holds 0.5%. While arguing the matter, Mistry’s counsel C Aryama Sundaram alleged that Bharat Vasani, nominee-director of Tata Sons to the board of directors of Air Asia India, who was also the Tata group legal counsel, through an email complained to Mistry about the same.
10/07/18 Financial Express

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