Religare Enterprises Faces Legal Challenges from Director and Shareholder
[[Dr. Rashmi Saluja]], a director at Religare Enterprises, has taken legal action to prevent her removal from the board. She filed a petition with the Delhi High Court to stop a resolution aimed at replacing her at the company’s annual general meeting (AGM) scheduled for February 7, 2024. Saluja claims that her removal would violate her five-year term, which began in 2020, as per the Companies Act, 2013.
Saluja’s Argument Against Removal
Saluja argues that the Companies Act mandates the yearly retirement of one-third of the board, excluding independent directors. As the sole executive director, she falls under this rule. However, she contends that her fixed five-year term should override this provision. Saluja’s petition challenges Section 152 (6) of the Companies Act. She seeks to prevent Religare from voting on or implementing the resolution to remove her. She wants to continue her role till 2028.
Minority Shareholder Opposes Burman Family Acquisition
In a separate development, a minority shareholder, Sapna Govind Rao, owning 500 shares in Religare Enterprises, has also filed a petition in the Delhi High Court. Rao seeks to halt the acquisition of Religare’s stake by the Burman family, known for their association with Dabur. Instead, Rao supports a counteroffer made by Danny Gaekwad, which market regulators returned earlier.
Court Proceedings and Latest Updates
Justice PK Kaurav of the Delhi High Court heard Saluja’s case. The case, presented before the single judge bench of Justice Purushaindra Kumar Kaurav, is scheduled for another hearing on Tuesday. This legal battle adds another layer of complexity to the ongoing control tussle surrounding Religare Enterprises. The market analysis suggests this news will have significant business implications for the company. Stay tuned for further updates on this developing news story.
What This Means for Religare
These legal challenges create uncertainty around Religare’s leadership and future direction. The outcome of these court cases could significantly impact the company’s business operations and market standing. This latest business news highlights the importance of corporate governance and shareholder rights.
Key Takeaways from the Religare Case
*The case emphasizes the complexities of board appointments and removals under the Companies Act.
*It underscores the role of minority shareholders in challenging corporate decisions.
*This case highlights the potential for legal disputes to disrupt business operations.
*The news surrounding Religare Enterprises underscores the importance of staying informed about the latest business and market updates.