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Victory For PTL Enterprises' Minority Shareholders

Published on Wed, Oct 01,2014 | 09:18, Updated at Wed, Oct 01 at 09:18Source : 

The minority shareholders of PTL Enterprises Limited, achieved a breakthrough when on 19 September 2014, the High Court of Kerala (vide its order dated 19 September 2014) granted an interim injunction staying the proposed disposal of its ‘Healthcare Business’ and seeking an investigation into the affairs of the Company. This was in response to the petition filed under Section 237 of the Companies Act, 1956, by the Kerala State Industrial Development Corporation Limited (“KSIDC”), a Corporation wholly owned by the Government of Kerala and a shareholder of the Company.

If it finds merit in the arguments put forward by KSIDC, the Court may subsequently order the Central Government to appoint an investigator to undertake an investigation into the affairs of the company and the allegations made by the petitioner.

From a minority shareholders’ perspective, the deferral is a victory. Even if the Court dismisses the petition, and the resolution is indeed put to vote, it will only be after 1 October 2014, by which time the more stringent SEBI’s Listing Agreement will come into effect, and the controlling shareholder will not have a vote.

But it is still too early to celebrate. The real win will be if PTL’s shareholders get a fair price for the hospitals business.

Attached is the report on this case by proxy advisory firm IiAS

Attachments : F1 2 Institutional EYE_PTL_Shot in the Arm.pdf

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