The petition has sought interim relief in the form of restricting the conversion process.
MUMBAI: The minority share holders of Tata Sons limited have challenged the resolution of the board of directors as well as the National Company Law Tribunal (NCLT) order permitting the conversion of the company from a public limited company to a private limited company, recently on the grounds that the company is run by Tata Trusts and was regulated by laws pertaining to public limited companies.
However, the conversion would mean that the directors and trustees would have a free hand in plundering the `5 lakh crore for their vested interests. The petition has pleaded that the conversion should be quashed in the best interest of the public at large and reconverted to a public limited company.
According to the writ petition filed by three share-holders through advocate Mathews Nedumpara in the Bombay high court, the entire Tata Sons Limted company was set up through the funds provided by J.R.D Tata, Sir Ratan Tata, Dorabji Tata and Meherbai Tata through which various Tata Trusts were formed. The company run and operated by these Tata Trusts has a cumulative worth of Rs 5 lakh crore and philanthropic activities envisioned by the donors were being achieved when it was being run as public limited company.
The petition has sought interim relief in the form of restricting the conversion process as well as directing the registrar of company from processing the conversion application and ensure that the company remained a public limited company.