Actor Jackie Shroff files plaint in NCLT against former stakeholders of Sony Entertainment
In 2023, Shroff filed a petition alleging that his interests were negatively impacted due to management discrepancies and the dominance of majority shareholders.
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Jackie Shroff has approached the National Company Law Tribunal (NCLT) to assert his rights as a minority shareholder in Atlas Equinfin Pvt. Ltd. The NCLT has agreed to hear Shroff’s petition at a later date after Atlas Equinfin’s lawyer informed the tribunal that the buyback of Shroff’s stake is under consideration following the Supreme Court’s dismissal of the company’s appeal.
According to a media report, In the 1990s, Sony Group and Shroff partnered to launch a TV channel. A Joint Venture Agreement was signed in December 1994 to establish a holding company, Atlas Equinfin. Atlas held a 32% stake in Sony Entertainment, while Shroff held a 10% stake in Atlas Equinfin.
As part of the joint venture, the company’s authorized capital was increased to ₹1 crore, and shares were issued to stakeholders. However, in 1995, a significant portion of the non-resident stakeholders’ shares was transferred to a Mauritius-based entity.
In 2023, Shroff filed a petition alleging that his interests were negatively impacted due to management discrepancies and the dominance of majority shareholders. In February 2023, the NCLT found merit in Shroff’s claims of oppression and mismanagement, directing the majority shareholders to purchase his shares for ₹18.53 crore.
The NCLT concluded that buying back his 10% stake would help resolve the deadlock. The company then appealed the decision to the National Company Law Appellate Tribunal (NCLAT), which dismissed the appeal in September 2023, stating:
“The NCLT had decided to resolve the deadlock by issuing the appealed directions. Admittedly, the respondent cannot sell his shares on the open market since it is a private company and not publicly listed. Therefore, the NCLT’s approach to end the dispute among the directors/shareholders is not prejudicial to anyone and would rather facilitate the smooth running of the company.”
Following this, the company filed an appeal with the Supreme Court against the NCLAT’s order. On November 22, 2023, the Supreme Court dismissed the appeal.
In light of the Supreme Court's decision, the company informed the NCLT that it is finalizing the buyback process. The tribunal has postponed the hearing to January.
