April 21, 2018

Reed Relays- Big Victory For Small Investors in NCLAT

National Company Law Appellate Tribunal ( NCLAT ) , New Delhi has recently set aside the NCLT , Chennai ' Order regarding Reed Relays 'compulsory cancellation of Non Promoters' shares at a very low rate of Rs. 107 /- share.

NCLAT , New Delhi has ordered that the case be reverted back to NCLT , Chennai and be heard afresh.


This is a great victory for Public / Non Promoter shareholders who have been victims of unfair / unethical cancellation / acquisition of their at very low rates



We are very proud of , among others ,Mr. Dilip Surana a leading share dealer of Chennai and Mr. Mahendra G Wadhwani of Mumbai , a public spirited Investor who pursued the case , out of their hometowns ,all the way to New Delhi.

We wish that Public Spirited Investors like Mr. Surana and Mr. Wadhwani and others like them ( like Mr. P P Zibi jose of Kochi  ,Mr. IP Gupta of Faridabad - Haryana , Mr. Tushar Agarwal of Ahmedabad, Mr. Dhruval Shah of Ahmedabad   , Bhavikk Shah of Mumbai and many others )   join Board of Directors of Public Limited Listed Companies as Independent Director.

 This landmark NCLAT  Judgement would be of great help , in future ,to Non Promoter Investors and prevent the tyranny of the Promoters over Small Investors . 

Earlier small investors were taken for granted by the Promoters. 



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old posts

October 07, 2017


Reed Relays Cancels Public Shares @ Rs.107- Shareholders Aggreived

Blog Gratitude to :-



Mahendra G. Wadhwani,
501-506 Business Plaza,
33 Gazdar Bandh Road,
Santacruz (West), Mumbai - 400 054
Mob.: 09820140363 / 9322530308



for mailing a copy of Hon'ble  NCLT Chennai Order dt. 04/10/2017, Order No.CP 21 / 66 ( 1 ) / CB / 2017 , under Section 66 ( 1 ) of The Companies Act 2013.



The operative part of the Judgement is that Hon'ble NCLT has accepted Reed Relays ' case in totality . Shares of Non Promoters would be compulsorily cancelled @ Rs. 107 ( as determined by valuers appointed by Reed Relays.

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The Blog wishes to place on record the spirited objection put up by the leading Share Dealer of Chennai , Dilip Surana .

-------------------------
.
Dilip Surana
Strides Financial Services
"Arihant Plaza"
84-85,Wall Tax Road, Ist floor
Park Town, Above SBI
CHENNAI 600003
Phone No 044-25350312, 25350313
Fax No  044-42371148
Mobile 9840278351      95000 95121
dilipmsurana@gmail.com

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We wish more such Pro Public, Pro Active Shareholders Guides come forward,

Great Work : Mr. Dilip Surana

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please , also  read

September 19, 2017


Activist Shareholders Should Join Board of Directors

please click


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Blog Comments 

Shareholders should not give up . Resources should be contributed ( Contri ). An Appeal should be filed

with  and an Interim Stay applied for


National Company Law Appellate Tribunal

http://compat.nic.in/

Grounds of Appeal

Hon'ble NCLT has erred in observing that NCLT cannot increase the price of compulsory acquisition . It can as was done by the Hon'ble Hiigh Court of Bombay in the case of Cadbury.


As per Hon,ble Bombay High Court , aggrieved shareholders can seek Court's permission to appoint their own valuers.


Company's Valuers are selected / paid by the Company. So, they can be biased. 

please click

  
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Blog Comments Please consult

thass18@legalserviceindia.com

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old post


November 17, 2016


Sheer Loot -Reed Relay Compulsory Buyback @ Rs.107- Experts Say

Letter by a Shareholder to the Company :-


Dear Sir:

I have received your postal Ballot Notice regarding compulsory acquisition of non-promoter shareholdings. In this connection the proposal seems to me a dishonest, illegal and criminal proposal for illegal enrichment at the cost of the non-promoter shareholders who have believed in your entrepreneurship and invested in your Company by going through your published Balance Sheet of several years. Till date we were not aware that you had criminal and illegal intentions to cheat the shareholders of your own company. We were under the impression that the promoters are all people of high ethics, morality, equity and fair.  However the dark side of you has come out openly through this compulsory acquisition proposal which I am sure will be a black mark for you for generations to come.

Your reasoning for the compulsory acqusition as mentioned in the explanatory statement  in the garb of SEBI guidelines etc are all deliberate falsehood with ulterior motives of personal enrichment. In the process it is distressing to see two professionals 1) P. Pattabiraman and Co. Chartered Accountants  and 2) Mr. Adit N. Bhuva, Practising Company Secretary are also colluding  with you for your illegal proposal.

The proposal raises fundamental questions of investments in Securities of Public Limited Companies by investors and the way in which corporate governance are handled by fraudulent promoters like you.  The systematic mis-use of SEBI guidelines, misuse of the name of High Court, Companies 2013 etc.in your proposal  are a big challenge.

I have decided to take up the matter with appropriate legal forums to see that you are prevented from going ahead with this proposal. 

In the meanwhile you are requested to kindly forward me a copy of valuation report of P. Pattabiramen & Co, Chartered Accountants who has determined a fair value of the shares.

P P Zibi jose
Shareholder



=========================


 As per my view fair value is above 400.

Dhruval Shah


(M)- 9898150967/8000133721(whatsup)

================================


Reed relays& electronics India ltd proposing to Cancel Non Promoter Holding @ 107 per share. Very Unfair Treatment to minority shareholders.

Book Value     Rs 345
Cash and Bank Balance  Per Share Rs 210



 Dilip Surana
Mobile   09840278351 
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OLD POSTS

Reed Relay - Shareholders Unite to Get Cancelled @ Compulsory Acquisition

Dear Sir,

I would like to invite Share holders of Reed Relay though this EFFECTIVE PLATFORM to protest against the company

I am holding just 212 shares and that to purchased not at very high price but to protect other shareholders and to protest AGAINST THE DADAGIRI OF THE PROMOTERS.

"  I REQUEST THE SHAREHOLDERS TO VOTE THROUGH THE ELECTRONIC MEDIA ONLY i.e. though evoting only. Because it may happen that promoters intentionally do not put entry of the ballot in the inward register, may ask the post man not to deliver the same before the expiry date, may ,may , do any thing as they like . but if the same is done through " EVOTING"  we have perfect record officially on the website .

i have yesterday voted through the evoting platform and is very easy to use the same.

IT IS MR. NARENDRA MODI WHO HAS PUT A SURGICAL STRIKE AGAINST THE BLACK MONEY NOW IT IS OUR TURN TO PUT SURGICAL STRIKE AGAINST THE GREEDY AND CHEATER PROMOTER WHO HAS USED OUR MONEY TO FLOURISH THE COMPANY AND WHEN THERE INTENTION IS OVER THEY THREW AWAY LIKE ANY THING.

JAGO SHARE HOLDER JAGO.

JAI HIND. 

THANKS & REGARDS,
TUSHAR S AGARWAL
AHMEDABAD
M# 09824601977


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OLD POSTS

November 15, 2016


Reed Relays @ Rs.107-Compulsory Buy Back- Shareholders Protest

ONE MORE COMPANY HAS BEEN ADDED TO THE GROUP OF COMPULSORY BUY BACK 

THE NAME IS REED RELAYS AND ELECTRONICS INDIA LIMITED

THEY HAVE SENT THE POSTAL FORM THROUGH SPEED POST FOR PASSING THE RESOLUTION FOR COMPULSORY EXTINGUISHED THE SHARES OF MINORITY SHARE HOLDERS @ 107/-

PLEASE KNOW THE FACT

B.V  350+

DIVIDEND PAYING  (FOR THE YEAR 15-16 DIVIDEND PAID RS. 1.6

SMALL EQUITY OF JUST RS. 1 ODD CRORE 

PLEASE GUIDE ME AS I DONT WANT TO SURRENDER THE SHARES @ 107/-



TUSHAR S AGARWAL
AHMEDABAD
M# 09824601977

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old post

November 18, 2016


Compulsory Buyback - Bad in Law - Are Anti Public Shareholders - Reed Relays Latest

OPPOSE  COMPULSORY BUY BACK OF SHARES

Delisting may be OK .
 But forced cancellation of Minority shares is not done even in Capitalism
Capitalism means Demand and Supply.
If the Majority wants the Minority 's shares then , to Quote from Mario Puzo 's Godfather " " They should make an offer we cannot refuse "

. Let them approach us and buy at a mutually agreeable price but not at a Dictated Price.
Free will transactions are the essence of Capitalism .

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OLD POSTS
October 27, 2016


Alfa Laval ( India ) Kicks Out Loyal Remainder Public Shareholders

Alfa Laval ( India ) has become the latest MNC  to follow the example of Cadbury India, in compulsorily buying back the shares of Non Promoter remaining Loyal shareholders through a Court order. 


The payment made is @ Rs. 4000/. same as was given four and a half years ago for voluntary buy back / delisting. 

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  Alfa Laval ( India ) Limited Delisted on 19-04-12 at Exit Price of Rs. 4000 Per Share.Exit Window was available Till 18-04-13.

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January 18, 2011


Cadbury India Limited

We salute all those share holders of Cadbury India who are steadfastly giving their time and money in pursuing the High Court case against compulsory acquisition of shares from remaining minority share holders.

There are around 8,159 remaining non promoter shareholders who together own 2.42% stake in Cadbury India.

We strongly feel that Government of India and SEBI should amend the laws so that Companies using their " brute majority " are not able to " compulsorily " buy out minority shareholders at what they perceive to be the " fair value " . Delisting may be OK . But a High Court Order for selective share reduction ( of Non Promoter Share holders ) is a different matter altogether.

 1 ) If a company wishes to buy back compulsorily then in the voting procedure the majority holder ( promoter ) should be debarred from voting . Only the small share holders should have the Right to vote on that particular Resolution .

2 ) As in the case of land acquisition , the Company should state valid reasons for acquisition of remaining shares ( In Cadbury 's case the remaining 2 odd  % share holders can , frankly , in no way alter  the Company 's policies.)  Only a few more Annual Reports are to be despatched and a few more chairs at the AGM .  ( Cadbury India Limited 's shares were delisted w.e.f  20-01-2003 )

3 ) There should be a soletium  ( a premium over and above the fair value to compensate for compulsory buy out ) of 50 %

If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate . The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. For example if Cadbury India Limited feels that Rs.2000 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders

However , we  sincerely wish that Cadbury India Limited offers its remaining loyal share holders " Kuchh Meetha " and in New Year 's " Shubh Arambh " withdraws this move.
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Compulsory Back Back of Shares- Violates Fundamental Right to Equality

Regarding the move , earlier of Cadbury India Limited and , now , by Shakti Met-Dor Limited :-


Compulsory Buy Back of Shares ( selectively from minority Non promoter Share holders ) is violative  of Fundamental Right of Equality enshrined in the Constitution of India

Such a move creates two separate and unequal classes of Shareholders , i.e. Promoter Share Holders and Non Promoter Share Holders .

Please read this very informative Post :-

http://www.legalservicesindia.com/article/article/squeeze-out-of-minority-shareholders-1503-1.html

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For Shakti Met-Dor , please click :-

http://www.rareindianshares.info/2013/05/shakti-met-dor-compulsory-acquisition.html
--------------------Regarding Compulsory Cancellation of Shares Moves  by

Cadbury India Limited 

Shakti Met-Dor Limited  ((subsidiary of German giant Hormann Beteilgungs Gmbh )

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.
http://www.rareindianshares.info/2013/05/corruption-is-there-in-indian-corporate.htmlhttp://www.suchetadalal.com/?id=175202d7-a5ce-be2f-492fe1477460&base=sub_sections_content&f&t=Essar%27s+Delisted+Saga

 http://www.business-standard.com/india/news/cadbury-raises-buyback-price/421719/

 http://www.moneycontrol.com/news/business/why-didn39t-you-give-fin-projections-to-ey-hc-asks-cadbury_562074.html

http://seekingalpha.com/news-article/1520805-cadbury-kraft-india-one-of-fastest-growing-operations-for-kraft-globally

http://rareindianshares.blogspot.com/2011/01/cadbury-quit-india.html

http://www.gauravblog.com/?p=1277

http://www.kraftfoodscompany.com/in/en/Brands/index.aspx

http://www.rareindianshares.info/2012/07/ecellent.html

http://altaisadvisors.com/blog/2012/07/08/cadbury-india/comment-page-1/#comment-1517

http://www.rareindianshares.info/2012/11/cadbury-india-or-mondelez-international.html
http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/small-equity-investor-how-to-safeguard-your-interests/articleshow/21742266.cms?curpg=3

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new post

Reed Relays- Steps For Stopping Compulsory Bay Back

Dear All,

Kindly follow below steps to stop compulsory Buy back by RRE.

1) E voting - Dissent to the resolution (Against)   (Kindly check your different portfolios) https://www.evotingindia.com/login_BO.jsp?t=i1

2) Send duly filled and signed postal ballot with Registered AD 

3) Register complaint against company on SCORE.   http://scores.gov.in/Complaint.aspx?flag=n

4) If possible, Issue Legal Notice to promoter.

 Please circulate into your group as many as possible who have shares of RRE.

Regards,
Jignesh Gohel

(M) 9408709494

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HUM MEHNAT KASH ISS DUNIYA SE JAB APNA HISSA MANGEY GEY IK BAGH NAHI; IKK KHET NAHIN HUM SAARI DUNIYA MANGEY GEY ( Josh Malihabadi ) ----------------- Saadda Haq , Ethey Rakh

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