Rekha Jhunjhunwala-Backed IKS Health Faces Oppression, Mismanagement Allegations — Exclusive

IPO-bound IKS Health, a healthcare solutions provider backed by prominent investor Rekha Jhunjhunwala, faces allegations of oppression and mismanagement, as per people in the know and a court filing. The allegations stem from a petition filed by two minority shareholders at the National Company Law Tribunal in Mumbai.

The shareholders, who collectively hold 70,000 shares (0.04% of the company’s paid-up capital), have raised serious concerns about corporate governance practices and statutory violations within the company.

These shareholders are Tanveer Ahmed, who has held 50,000 shares since 2015 and Rais Ahmed Ali Motlekar with 20,000 shares since 2012.

The petition alleges that the company has repeatedly failed to stick to mandatory corporate governance norms and provisions under the Companies Act, 2013. The allegations include:

Failure To Issue AGM/EGM Notices: The two shareholders claim that they were deprived of their statutory right to participate in company meetings due to the non-issuance of notices for Annual General Meetings and Extraordinary General Meetings.

Illegal AGMs and Decisions: Resolutions passed during the 16th, 17th, and 18th AGMs, including financial approvals and auditor appointments, have been challenged as illegal. It is pertinent to note here that the statutory auditor appointed is Price Waterhouse, Chartered Accountants LLP.

Exclusion Of Minority Shareholders: The petition accuses the company of engaging in oppressive practices to exclude minority shareholders from decision-making processes.

Breach of Governance Norms: Allegations of violations of corporate governance standards further tarnish the company's image, ahead of its anticipated IPO.

The petitioners seek to nullify resolutions passed during AGMs/EGMs from 2021 to 2024 and even investigate company affairs.

They have requested an investigation into the company’s operations to identify irregularities. Furthermore, the petition calls for the removal of current directors and the appointment of independent administrators.

They have also demanded proper oversight for meetings and financial audits going forward and sought immediate interim relief by requesting the tribunal to restrain the company from implementing any resolutions passed in the disputed meetings.

The two shareholders are being represented by Advocate Kausik Chatterjee.

Meanwhile, IKS Health has also filed a caveat in the tribunal, people in the know told NDTV Profit.

This is to prevent any development without getting an opportunity to be heard. A query on the issue was sent to IKS Health and all material litigation has been mentioned in the company DRHP filed in August 2024, the people quoted above said. Additionally, the case is yet to be heard or admitted by the company law tribunal.

They did not comment on this new development. Any further responses will be added to this story.