Getting stay not conduct board meetings - dispute among directors
n v sudhakar
(Querist) 20 December 2011
This query is : Resolved
One company started by a person who is presently the Chairman & Managing Director (CMD). The other directors are his brothers and his sons. The company also got finance from financial institution. They have nominated 2 directors. Out of total 8 directors CMD and his 2 sons are on one side and 3 brothers and 2 directors from financial institution are on other side.
Both the groups filed both criminal and civil cases on various matters and pending at various courts.
Recently CMD group got a stay from a lower court for not conducting board meetings. Their matters went upto Supreme Court and Supreme court ordered for mediation. The other group instaed of coming forward for mediation, they are gaining time by giving some reason or the other. Because of the mediation order by supreme court all other cases are kept pending.
CMD group came to know that the other side is planning to conduct a board meeting without inviting CMD group and remove all the 3 directors from the company.
Under the above circumstances is there any possibility of obtianing permanent stay for not conducting board meetings, if so, kindly let us know how?
An early reply is requested.
N V Sudhakar
Shonee Kapoor
(Expert) 20 December 2011
If stay is granted subject to mediation by the SC, any decision taken in such board meeting would be VOID.
However, if no stay is granted, then the board action can be challanged based on the judgement of the courts.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
prabhakar singh
(Expert) 21 December 2011
The suit is possible but this view is subject to terms of order of supreme court.At least its operative portion was required for perusal to form any better opinion.
Raj Kumar Makkad
(Expert) 21 December 2011
It shall be better to obtain a stay order from Hon'ble Supreme Court on conducting of board meeting heard to be organized by the other group and also against the illegal removal of the applicants till the decision of the matter pending before Hon'ble Apex Court.
Safety is better than cure.
