Some of Aakash’s minority shareholders including Blackstone have petitioned the National Company Law Tribunal, saying that the company has been trying to remove their rights and confer special rights on Manipal Education & Medical Group, which holds an around 40% stake.
Glas Trust, which represents the US lenders of Byju’s, wants to be a party to the case because the edtech firm’s bankrupt parent, Think & Learn, is also a minority shareholder of Aakash.
Aakash urged the Bengaluru bench of the NCLT to reserve its order, as both parties had presented their arguments. The bench declined to do so, stating that Glas Trust has yet to be impleaded in the case.
“They waited for the hearing to be virtually concluded, and at that stage, they come forward and say, ‘no, no, we have something to say’. If they had something to say, they should have said it earlier,” senior advocate CK Nandakumar, representing Aakash, said while questioning Glas Trust’s intervention in Blackstone’s petition.
“They have no nexus with me. If that is the case, then why are they stalling the hearing on my vacating application … Here is a complete stranger as far as this case is concerned,” he said.
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Glas Trust argues that the removal of minority shareholder rights could impact Byju’s insolvency process as the edtech firm would lose control over its profitable affiliate, Aakash.Also Read: Aakash Institute seeks NCLT nod to amend Articles of Association amid shareholder feud
“Every board resolution requires the affirmative consent of Think & Learn’s representative. For every shareholders’ 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,” senior advocate Srinivasa Raghavan, representing Glas Trust, argued.
Earlier, Glas Trust had questioned an extraordinary general meeting called by Aakash in November last year, which it said was aimed at amending the articles of association of the coaching centre operator.
Raghavan argued that the resolution passed was invalid because Byju’s promoter attended the board meeting on behalf of Think & Learn, whereas it should have been the resolution professional representing the company as it was under corporate insolvency resolution process.
The bench asked Aakash to address how the resolution has been passed with a person who is not authorised to attend the meeting.
“I am also joining my friends in opposing this request for impleadment. If Think & Learn may have legitimacy, we have filed an application to implead Think & Learn, but Glas Trust may not be a proper party,” said senior advocate Niranjan Reddy, representing the minority investors of Aakash.
Also Read: NCLT agrees to hear Glas Trust in Aakash minority shareholder rights case
