Liberty Shoes has removed its Executive Director Adesh Kumar Gupta from the board after the National Company Law Tribunal (NCLT) dismissed his petition seeking exemption on requirements to file a plea, according to a regulatory filing. Gupta, who along with some other shareholders holds 5.83 per cent of the company, had filed a plea under Section 244 of the Companies Act, 2013, seeking waiver in requirements to file a plea alleging oppression and mismanagement.
To file a plea alleging oppression and mismanagement, which is done under Section 241, it should be backed by at least one-tenth of the total number of the issued share capital of the company.
However, NCLT has powers to waive this requirement in special circumstances.
Gupta had approached NCLT seeking this waiver, which was rejected on November 20, 2023, according to a regulatory filing by Liberty Shoes on Tuesday.
Earlier, NCLT had given a go-ahead to the Annual General Meeting of Liberty Shoes in which a special notice was received for the removal of Gupta as ED of the company from shareholders.
Gupta had moved NCLT alleging oppression and management of minority shareholders under Section 241 of the Companies Act and sought a waiver under Section 244.
NCLT had given a nod to the company’s AGM scheduled for September 30, 2023, but had said that its decision would not be acted upon till further direction.
In the AGM, all 7 resolutions, including the one in which Gupta’s removal was proposed by a shareholder, was also passed.
However, it was not implemented due to NCLT’s direction. After NCLT dismissed Gupta’s plea, Liberty Shoes on Wednesday informed the bourses about his removal and the appointment of two independent directors.
