Categories
Observations

Landmark Case : Minority Shareholders Vs Ricoh

This case can be a landmark one and can be a ray of light for minority shareholders in scam hit companies like Fortis, Religare,  Gitanjali Gems etc

From Quint:

Minority shareholders of Ricoh India Ltd. have demanded compensation from the insolvent company and its Japanese parent for losses caused by a drop in its share price after a fraud was detected at the maker of scanners and photocopiers.

Nearly 165 public shareholders owning a combined stake of 2.3 percent filed a petition at the Mumbai bench of the National Company Law Tribunal seeking relief, accusing Ricoh India of oppression and mismanagement. They want Japan’s Ricoh Company to purchase their shares for about Rs 94 crore at Rs 1,029 apiece, the price prevailing as on June 30, 2015 before an accounting fraud at the company came to light.

 

 

4 replies on “Landmark Case : Minority Shareholders Vs Ricoh”

This Case will be fought tooth & nail. It’s like an Open & Shut Case and Tribunal is bound to be positive towards Minority Shareholders. This is more so in view of preliminary findings of SEBI order which clearly says that shareholders lost money because they were made to believe on the numbers published. Findings of Whole-time Member Mahalingam are very convincing and conclusive.

If this case is settled in favour of minority shareholders, then, it will open a huge pandora’s box for Indian shareholders and listed companies. Frauds happen every where including at public sector, private sector including at companies like Fortis. And if minority shareholders demand their pound of flesh because of some fraud and misreporting, then, it is the end of road for cheats and fraudsters. Hope courts will settle such cases on fast track basis and that too, without rights to appeal in higher court.
Even in case of all the Banks including PSU banks, the under reporting of NPAs can also a case of fraud, cheat and window dressing.
Investors and shareholders must rise and start fighting such cases.

Could any of you please share the contact details of the lawyer representing the Minority Shareholders since I would like to join into the legal action?

Please share the contact details of the group who have activated this case and lawyers representing the case.

Leave a Reply

Your email address will not be published.