- (1.) This appeal under section 10F of the Companies Act, 1956, is against an order dated 25th April, 2005 of the learned Company Law Board, in an application of the appellants under section 247(1A) read with section 250 of the Companies Act, 1956, refusing to direct the Central Government to appoint an Inspector and/or Inspectors to investigate into the affairs of Birla Corporation, hereinafter referred to as the company, as regards the membership of the company and other matters relating to the company, for the purpose of ascertaining the true persons who are financially interested in the success or failure of the company or are controlling the company.
(2.) The appellants, who admittedly own less than 0.16 per cent of the shares of the company, filed an application in the Company Law Board under section 247(1A) read with section 250 of the Companies Act, inter alia praying for the following orders: "(a) The relevant facts in relation to the shares in the company particularly the ones held by the respondent Nos.1 to 28 be enquired into; (b) An investigation be directed on such terms and on such conditions as to this Hon'ble Board may seem fit and proper for obtaining information and ascertaining the true identity of person or persons who are financially interested in the success or failure, whether real or apparent, of Birla Corporation Limited and, further, to ascertain the true identity of the person or persons who are able to control or to materially influence the policy and affairs of the company; (c) An investigation be directed to ascertain as to whether the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 have been complied with by the persons now seeking to control or to materially influence the policy and affairs of the company."
(3.) In the aforesaid application the appellants also prayed for an interim order of injunction restraining the respondent Nos.l to 28 from exercising any rights as shareholders of the company including the right to vote or to receive dividends, bonus shares or right shares.;