NCLT Halts Aakash Educational Services' Controversial AoA Amendment

The National Company Law Tribunal (NCLT) has stayed the amendment of Aakash Educational Services' Articles of Association, responding to concerns by minority shareholders including Singapore VII Topco I, who claim their rights could be diminished. The hearing has been set for December 19, 2024.

The National Company Law Tribunal (NCLT) has intervened to halt proposed amendments to the Articles of Association for Aakash Educational Services. The resolution sought to adjust the AoA but faced opposition from minority stakeholders, chiefly Singapore VII Topco I, who alleged that their rights could be undermined.

In an interim order, NCLT instructed Aakash Educational Services and its associates not to implement the resolution for Agenda Item No. 8 from their scheduled Extraordinary General Meeting. The Tribunal stressed the importance of maintaining shareholder rights until the main petition is resolved.

The objections were made under Sections 241, 242, and 244 of the Companies Act, known for safeguarding minority shareholders. The tribunal has scheduled a follow-up hearing for December 19, 2024, while key stakeholders debate the fairness of the proposed alterations.

(With inputs from agencies.)