The new six-member board has been directed to take all the necessary steps to revive the ailing public-listed company and save it from the current financial crisis.
“We order that the present board of directors be removed with immediate effect. The removed directors, henceforth, shall not represent the company as director, and shall also not exercise any powers as director in any manner before any authority,” the principal bench of NCLT held in a recent order.
This arrangement will be in place for a period not exceeding one year or till further orders of this tribunal, the bench said.
The new board, comprising four former bureaucrats, a former ICAI president and a Supreme Court lawyer, will select a chairman from among themselves and will take all necessary steps to run the company.
The new board has been asked to hold a meeting on or before December 22. The NCLT has asked the ministry of corporate affairs to extend “full cooperation and assistance” to the new board.
The order follows 2015 petition filed by Vikram Kapur and other shareholders, who had management of one of the three units of the company, alleging oppression and mismanagement by the other promoters.
Besides, various other applications were filed by vendors and suppliers and the employees union.
The Kapur family claimed to hold 41.92% stake in Atlas Cycles (Haryana) and the rest was held by the general public. In 1999, the ownership of the flagship Atlas Cycles was divided into three equal shares, one for each son of the Kapur family.
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