Inclusiveness of minority shareholder principle of company law: Mistry counsel

Cyrus Mistry, Cyrus Mistry case in nclt, Cyrus Mistry tata sons row, Cyrus Mistry shares decision Cyrus Mistry.

In a rejoinder to arguments placed by Tata Sons’ lawyers before the Mumbai bench of the National Company Law Tribunal, senior counsel representing Cyrus Mistry’s family firms, CA Sundaram, said inclusiveness of the minority shareholder is a principle of company law. He read a judgement of the Madras High Court, in which the court had said that even without a written agreement and even in a listed firm, decades of directorship would entitle an ousted director be re-appointed by the other shareholder group. He told NCLT that the court in that case had ruled that in a case of oppression the test is not one of legality but of justice and equality. “Perfectly legal actions can be used to oppress and inflict inequity and the tribunal can intervene”, he argued. The Mistry group is seeking deletion of Article 121 in the Tata Sons articles of association that enable directors nominated by the trusts to reject any and every decision of the board of directors of Tata Sons.

Arguing that affirmative rights are usually given to nominee directors of minority shareholders on limited matters, while the Tata Trusts-nominated directors are the majority and have a veto on every matter before the board of directors, Sundaram said Tata counsels’ endorsement of the articles of association of Bharti Airtel is an excellent precedent for the Mistrys. “In Bharti, the protective veto rights are given to the minority investor and not the Mittals,” he said. “By two directors having the power to say no to every decision, and the Tata Trustees using this as the reason to demand pre-approval from them before anything is taken to the board of directors, the very purpose of the existence of Tata Sons board of directors has been eroded”, he said.

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Firms’ gagging clauses could harm public interest, Labour warns

Firms’ gagging clauses could harm public interest, Labour warns

Tom Watson calls on PM to act firmly to prevent misuse of non-disclosure agreements by businesses

Gavin Williamson



There is concern that NDAs were preventing staff at the fireplace firm where defence secretary Gavin Williamson used to work from speaking out.
Photograph: Daniel Leal-Olivas/AFP/Getty Images

Labour has warned that gagging clauses imposed by businesses on departing staff could be used to inhibit discussion on issues in the public interest and called on Theresa May to act firmly to prevent their misuse. Last week Downing Street said that the prime minister was concerned about the use of non-disclosure agreements and said she would consider whether changes were needed.

But on Monday, amid concern that their use in standard employment contracts at some companies could inhibit former staff from disclosing workplace concerns, Labour’s deputy leader, Tom Watson, said: “Gagging orders should not be used to inhibit the discussion of issues clearly in the public interest.”

Watson was speaking amid fears that such orders were included in contracts at a fireplace firm where defence secretary Gavin Williamson worked and could be preventing staff from speaking about the circumstances of a relationship between Williamson and a colleague. Queries from the Guardian have established that some former staff signed non-disclosure agreements after leaving Elgin & Hall or its parent company Aga Foodservice Group.

One former executive who worked with Williamson said it was “standard” in the group for limitless gagging clauses to be written into compromise agreements. The same source said terms and conditions of employment contracts included clauses stopping the sharing of sensitive information for six years or more.

The defence secretary is under growing pressure to respond to unanswered questions after he disclosed a relationship with a junior colleague at Elgin & Hall in 2004.

Watson said it would be right if Aga let staff at the firm know they would not be sued if they spoke out. “Last week the prime minister’s spokesperson said Theresa May will ‘look into the way these non-disclosure agreements are applied’ following the Presidents Club revelations,” he said. “It would only be right if any non-disclosure agreements in this case that are applied to former and current members of staff are also looked at by the prime minister.”

Williamson gave an interview to the Daily Mail about the relationship a few hours after his lawyers refused to answer a series of questions from the Guardian about his departure from the fireplace firm of which he was managing director in 2004. In the article, he said the relationship “became flirtatious and a couple of times we shared a kiss”. He said he decided to leave the company to save his marriage to Joanne, a former schoolteacher.

However, a number of sources have suggested a more complicated story. In a series of exchanges that began on Thursday, Williamson’s lawyers refused to say:

  • Whether the woman reported Williamson’s behaviour to her line manager and an internal process followed;
  • what the outcome of that process was;
  • the terms on which he departed and whether he received a pay-off;
  • whether it was right for a managing director to engage in a relationship with a junior colleague;
  • why there appears to be no mention of his employment at Elgin & Hall in his official profile or social media.

A friend of Williamson’s dismissed claims that the MP was sacked from his job at the fireplace firm after details of the affair became known, and insisted that there was no disciplinary process when he left. “He was offered the job of operations director to stay. There was no disciplinary process,” the source told the Times. Williamson and Aga had not responded before publication.

Meanwhile on Monday, Williamson received a series of rebukes from former intelligence chiefs and diplomats at a hearing of a joint committee of MPs and peers looking into the national security review under way at present.

Although Williamson was never named, he was the target of criticism from Peter Ricketts, the former national security adviser, who rounded on him for last week removing the Ministry of Defence budget from the overall strategy review. Lord Ricketts described it as a “backward step”. He said he understood the politics behind the move, but it undermined a coordinated approach towards security that involved the intelligence agencies as well as the MoD.

His view was echoed by others giving evidence to the committee. The former head of MI6, Sir John Sawers, was critical of Williamson for “loose” comments in December calling for Britons who fought for Islamic State to be hunted down and killed.

Sawers said some of the 800 or more Britons who went to Syria to join groups such as Isis might be terrorists, but others would lead normal lives. “I think it is important politicians don’t put members of the armed forces or intelligence services in a position where they are expected to break the law. There are very clear laws governing military action.

“One of the essences of our system is we operate within the framework of the law. Yes, many of these people need to be brought to justice, but that does not mean a Wild West justice.”

Conservative MP Julian Lewis, chair of the Commons defence committee, asked whether Williamson might have given away classified material in an interview with the Daily Telegraph on Friday in which he warned of thousands of casualties from a potential Russian cyber-attack.

Robert Hannigan, former director of the surveillance agency GCHQ, said the prospect of casualties from a cyber-attack seemed a “perfectly reasonable” thing to say and he did not think it constituted a leak of classified intelligence.

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SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Wynn Resorts Limited — WYNN

NEW YORK, Jan. 29, 2018 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of Wynn Resorts Limited (“Wynn Resorts” or the “Company”)

WYNN, -9.32%

   Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

The investigation concerns whether Wynn Resorts and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here to join a class action]

On January 26, 2018, The Wall Street Journal published an article entitled “Dozens of People Recount Pattern of Sexual Misconduct by Las Vegas Mogul Steve Wynn.”  According to the article, “dozens of people… who have worked at Mr. Wynn’s casinos told of behavior that cumulatively would amount to a decades-long pattern of sexual misconduct by Mr. Wynn,” with some accusing him of pressuring employees “to perform sex acts.” On these revelations, the Massachusetts Gaming Commission announced that it would open a regulatory review into the Company over the sexual misconduct allegations reported in The Wall Street Journal article. 

On this news, Wynn Resorts share price fell $20.31 or 10.12%, to close at $180.29 on January 26, 2018.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com

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SOURCE Pomerantz LLP

Copyright (C) 2018 PR Newswire. All rights reserved

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SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of MetLife, Inc. – MET

NEW YORK, Jan. 29, 2018 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of MetLife, Inc. (“MetLife” or the “Company”)

MET, -0.68%

   Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.

The investigation concerns whether MetLife and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here to join a class action]

On January 29, 2018, post-market, MetLife announced that it would postpone its fourth-quarter earnings announcement, citing a “material weakness” in its financial reporting.  In addition, MetLife advised investors that it expected to increase total reserves between $525 million and $575 million on a pre-tax basis to cover certain annuity recipients “who have been unresponsive or missing over time.”  On this news, MetLife’s share price has fallen sharply in after-hours trading on January 29, 2018.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.

CONTACT:Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com

View original content:http://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-metlife-inc–met-300589880.html

SOURCE Pomerantz LLP

Copyright (C) 2018 PR Newswire. All rights reserved

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Secret Service Warns Financial Firms of ATM Cyberattacks

The Secret Service is warning financial institutions about a type of cyberattack known as jackpotting.

Secret Service officials say the crime involves installing malicious software or hardware at ATMs that force the machines to release large quantities of cash on demand.

They say criminals have been able to find vulnerabilities in financial institutions that operate ATMs, typically stand-alone machines located in pharmacies, big-box retailers and drive-thrus.

The Secret Service says the criminals range from individual actors to international organized crime syndicates.

The Secret Service says authorities have recently obtained credible information about planned jackpotting attacks in the U.S. and have alerted law enforcement and financial institutions.

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Right to work law upheld

The state’s 2017 right-to-work law has survived its initial court challenge.

Franklin Circuit Court Judge Thomas Wingate has dismissed a suit filed by the AFL-CIO and Teamsters Union challenging the constitutionality of the right-to-work law, which was one of the first laws enacted by the Republican-controlled 2017 Kentucky General Assembly. Republican Gov. Matt Bevin made a right-to-work law one of his top legislative goals.

In the lawsuit, union advocates thought they had a winning argument: that the law is discriminatory because it treats unions differently than other organizations that collect fees or dues to provide services. But Judge Wingate disagreed.

“The legislation does not treat unions differently than similarly situated organizations because unions are unique, federally created entities,” Wingate wrote in his dismissal.

In the past few years, several similar lawsuits have been dismissed in states that have passed similar right-to-work laws. Wingate also cited a similar lawsuit in Indiana, Sweeny v. Pence, where the court ruled that Indiana’s right-to-work law did not take union’s property.

“Kentucky’s limitation of employees from whom unions collect dues is not a taking of union property but rather is a prevention of Kentucky employees paying compulsory union dues,” Wingate wrote. “The takings issue is more apt to be brought before federal lawmakers and federal judiciaries.”

Kentucky became one of 28 states to have a right-to-work law when it passed the bill despite heavy union protests in the first week of the 2017 legislative session. In 2015, 11 percent of wage and salary workers in Kentucky were members of a union.

Not surprisingly, Governor Bevin celebrated Wingate’s ruling.

“The Court’s ruling confirmed what we already knew: Kentucky’s right-to-work law rests on a sound legal bedrock and is an essential economic driver for our state, bringing unprecedented job growth and a record $9.2 billion in corporate investment in 2017,” Bevin said. “This weak attempt to stop Kentucky’s economic growth through legal challenges has been appropriately smacked down.”

Bill Londrigan, the president of Kentucky’s chapter of the AFL-CIO, said the group plans to appeal the ruling. That’s its right, of course, but Kentucky was not exactly plowing new ground when it enacted a law removing the requirement that all workers in firms that have recognized unions must pay dues to those unions. The right-to-work law makes union membership optional even in so-called “union shops.”

Right-to-work laws enacted in other states have survived repeated legal challenges to them. There is no reason to think it will be any different in Kentucky.

This state’s still new right-to-work law is a result of the changing political climate in Frankfort. As we see it, the only way to return to the way things used to be is by having a pro-union majority again in the General Assembly, and at this point, that seems unlikely.

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Mining firms to list on NSE in new law

By KENNEDY SENELWA
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Companies investing at least $100 million in Kenya’s mining sector must have 24 per cent local shareholding through the stock exchange within three years of operations.

The requirement is contained in the Mining (Local Equity Participation) Regulations of 2017 drafted by the Ministry of Mining, and applies to firms extracting gold and other minerals but excludes crude oil and natural gas that are under the jurisdiction of the Energy Ministry.

Mining Cabinet Secretary Dan Kazungu said the regulations will allow Kenyans to participate in developing mineral resources by acquiring equity of mining companies and enabling extraction firms raise capital locally.

“The minimum local shareholding for a holder of a mining licence shall be obtained through a public offer in accordance with provisions of legislation relating to capital markets and listing rules of stock exchange,” he said.

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