Search the Internet          Tips  Sites: Finance, Investment

HC suggests setting up of a DPC board

The Bombay high court on Tuesday suggested the constitution of the board of Enron's Dabhol Power Company, but said it would decide on September 19 about its implementation.

The suggestion was mooted by Justice Hemant Gokhale and Justice Nishita Mhatre on an appeal filed by Maharashtra Power Development Corporation Ltd challenging its earlier order which allowed DPC to hold the annual general meeting on September 9, but not appoint the board of directors.

The judges suggested that one director should be from GE and Bechtel, two shareholders with 10 per cent each in DPC, and one each from MPDCL, the Industrial Development Bank of India and the foreign lenders.

They further said that the chairman of the company would be a retired judge to be appointed by the high court.

By an order dated September 6, Justice K K Baam had directed that the DPC's AGM be held on September 9. However, the judge restrained DPC from implementing the resolutions adopted in the meeting on appointment of board of directors.

Justice Baam delivered the verdict on an appeal filed by MPDCL under section 10-F of the Companies Act challenging the August 22 order of Company Law Board which permitted DPC to hold its AGM in Mumbai on September 9 under the chairmanship of C R Mehta, retired member of CLB.

MPDCL, a special purpose vehicle of MSEB holding 14.15 per cent shares in DPC, had filed a petition under sections 397 and 398 of the Companies Act before CLB bench in New Delhi challenging the resolution dated June 4 adopted by DPC at a meeting held in San Francisco.

ALSO READ:
The Enron Saga
More Money Headlines