Aakash Institute, Blackstone, Manipal Group Oppose Glas Trust's Intrusion In Minority Shareholders’ Rights
Claim that the changes could impact the company’s insolvency process
Aakash Institute, Blackstone, Manipal Group Oppose Glas Trust's Intrusion In Minority Shareholders’ Rights
Claim that the changes could impact the company’s insolvency process
Aakash Institute and its shareholders including private equity firm Blackstone and Ranjan Pai's Manipal Education & Medical Group have opposed making Glas Trust a party to a case to halt the coaching centre operator from removing the reserved rights of its minority shareholders.
Some of Aakash's minority shareholders including Blackstone petitioned the National Company Law Tribunal (NCLT), stating the company was trying to remove their rights and confer special rights on Manipal, which holds a 40 percent stake.
Glas Trust, representing the US lenders of Byju's, wanted inclusion, as the edtech firm's bankrupt parent, Think & Learn was also Aakash’s minority shareholder.
Aakash urged the Bengaluru bench of the NCLT to reserve its order. However, the bench declined and held that Glas Trust was yet to be impleaded.
Representing Aakash, senior advocate CK Nandakumar questioned Glas Trust's intervention, "They waited for the hearing to be concluded and then said, 'We have something to say.’ If they had something to say, they should have said it earlier.”
He added, "They have no nexus with me. If that is the case, why are they stalling the hearing on my vacating application? Here is a complete stranger as far as this case is concerned.”
Meanwhile, Glas Trust argued that the removal of minority shareholder rights could impact Byju's insolvency process as the edtech firm would lose control over Aakash, its profitable affiliate.
Appearing for Glas Trust, senior advocate Srinivasa Raghavan held, "Every board resolution requires the affirmative consent of Think & Learn's representative. For every shareholder’s meeting, a quorum can only be established if a Think & Learn representative is present. Now, this whole series of articles by which control of Think & Learn is there over Aakash is sought to be removed.”
Earlier, Glas Trust questioned an extraordinary general meeting called by Aakash in November last, which it said was to amend the articles of association (AoA) of the coaching centre operator.
Raghavan claimed that the resolution was invalid because Byju's promoter attended the board meeting on behalf of Think & Learn. Although the company’s resolution professional (RP) should have, as it was under the Corporate Insolvency Resolution Process (CIRP).
The tribunal questioned Aakash how the resolution was passed by an unauthorized person.
Meanwhile, representing the minority investors of Aakash, senior advocate Niranjan Reddy remarked, "I am also joining my friends in opposing this request for impleadment. If Think & Learn has legitimacy, we have filed an application to implead, but Glas Trust may not be a proper party.”