New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday sought details from the ministry of corporate affairs (MCA) regarding the constitution of private and public companies, following a plea by the Registrar of Companies (RoC) seeking changes to the Tata-Mistry judgement.
The matter will be heard next on Friday.
The 18 December NCLAT order held that Cyrus Mistry should be reappointed chairman of Tata Sons Ltd. The court had also struck down a move to convert the company from a public to a private entity, terming the change illegal because it was done without the approval of the National Company Law Tribunal.
Further, the two-member NCLAT bench directed RoC to restore Tata Sons to its public status. NCLAT chairman Justice S.J. Mukhopadhaya sought details on paid-up capital requirement of companies from MCA as that would determine if the firm should be deemed public or private.
“Public companies are held to a higher standard for protection of minority shareholders, whereas in private companies, a small group of members are maintained and it is not as strictly regulated. Hence, proving oppression in private companies is more difficult than in public companies," a corporate lawyer said on condition of anonymity.
RoC, which comes under MCA, had approached NCLAT on 23 December seeking certain changes to its order in the Mistry case. In the application, RoC sought to be included as a party in the ongoing matter. It also sought amendments to certain parts of the judgement “to correctly reflect the conduct of the Registrar of Companies, Mumbai as not being illegal and being as per the provisions of the Companies Act, 1956/2013...."
RoC has sought directions from the tribunal “for deleting aspersions made regarding any hurried help accorded by the Registrar of Companies, Mumbai to Tata Sons Ltd, except what was statutorily required to be done by Registrar of Companies, Mumbai".