Actor Jackie Shroff has approached the National Company Law Tribunal (NCLT) to protect his rights as a minority shareholder in Atlas Equinfin Pvt Ltd. The tribunal has deferred the hearing, allowing Atlas Equinfin additional time to finalise the buyback of Shroff’s stake. The company stated that the buyback of Shroff’s stake is under consideration.
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The issue dates back to the 1990s when Shroff collaborated with the Sony Group to launch a television channel. This partnership led to the signing of a joint venture agreement in December 1994, which established Atlas Equinfin as the holding company.
According to the agreement, Atlas Equinfin owned 32% of Sony Entertainment, while Shroff retained a 10% stake in Atlas. The agreement also increased the company’s authorised capital to ₹1 crore, distributing shares among the stakeholders. However, in 1995, a significant number of shares held by non-resident stakeholders were transferred to a Mauritius-based entity.
In early 2023, Shroff filed a petition alleging mismanagement and oppressive actions by the majority shareholders, asserting that these practices were detrimental to his interests. In February, the NCLT ruled in his favour, instructing the majority shareholders to buy back his 10% stake for ₹18.53 crore.
Atlas Equinfin contested this ruling in the National Company Law Appellate Tribunal (NCLAT), which rejected the appeal in September 2023. The NCLAT upheld the NCLT’s decision, stating that the buyback was a reasonable solution since Shroff could not sell his shares on the open market due to the company’s private nature. Subsequently, the company appealed to the Supreme Court, which dismissed the case on November 22, 2023.
The tribunal has scheduled the next hearing for January.
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(Edited by : Shoma Bhattacharjee)
