CLB restrains Temptation's voting rights
Basmati rice exporter Kohinoor Foods, which is facing a hostile takeover by Temptation Foods Ltd, has got a major reprieve with the Company Law Board restraining latter's voting rights on the basis of shares acquired by it.
By PTI |
NEW DELHI: Basmati rice exporter Kohinoor Foods, which is facing a hostile takeover by Temptation Foods Ltd, has got a major reprieve with the Company Law Board restraining latter's voting rights on the basis of shares acquired by it.
Passing an exparte interim order the Delhi bench of the Company Law Board suspended the voting rights of Temptation Foods acquired through purchase of Kohinoor's share from the open market.
"The voting rights with respect to the share as acquired by the respondent (Temptation) be suspended," said the board passing an interim order.
However, the board also held that Temptation Food was free to approach it against this interim order.
After issuing notices, the CLB also directed Temptation Foods to file its reply in three weeks and Kohinoor to submit rejoinder over it in two weeks.
CLB's direction came over a petition filed by Kohinoor's Joint Managing Director. The case would come before the CLB for next hearing on August 23, 2008.
According to the petition filed by the basmati market leader, Temptation has covertly acquired a shareholding of almost 30 per cent in Kohinoor Foods.
Passing an exparte interim order the Delhi bench of the Company Law Board suspended the voting rights of Temptation Foods acquired through purchase of Kohinoor's share from the open market.
"The voting rights with respect to the share as acquired by the respondent (Temptation) be suspended," said the board passing an interim order.
However, the board also held that Temptation Food was free to approach it against this interim order.
After issuing notices, the CLB also directed Temptation Foods to file its reply in three weeks and Kohinoor to submit rejoinder over it in two weeks.
CLB's direction came over a petition filed by Kohinoor's Joint Managing Director. The case would come before the CLB for next hearing on August 23, 2008.
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The Management of the Kohinoor Foods, which accounts around 35 per cent of the basmati market, has also approached market regulator SEBI against any attempt of hostile takeover. According to the petition filed by the basmati market leader, Temptation has covertly acquired a shareholding of almost 30 per cent in Kohinoor Foods.
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