The Delhi High Court on Thursday refused to halt the annual general meeting of Religare Enterprises Ltd., as it dismissed the appeal filed by the company's chairman, Rashmi Saluja.
Saluja had approached the division bench of the high court to safeguard herself from potential board ouster. Her fate depends on the outcome of the voting at the AGM.
The bench comprising Justices Rekha Palli and Saurabh Banerjee refused to intervene in the matter, thereby allowing the AGM to take place as scheduled. While the meeting will begin on Friday, the voting on Saluja's position and her re-appointment began on Tuesday.
In another bid to halt the AGM, a minority shareholder of the company with 500 shares, Sapna Rao Govind, has now filed a special leave petition before the Supreme Court against the high court's directions.
Saluja had initially moved the high court against her removal as a director of Religare, as she wished to continue in her current role till 2028, according to the petition copy seen by NDTV Profit. Her request was, however, dismissed by a single-judge bench of the high court.
The petition further mentioned that Saluja wishes to avoid retirement by rotation.
Her plea challenged Section 152 (6) of the Companies Act, which mandates that one-third of the board, excluding independent directors, has to retire annually. As the sole executive director, Saluja faces retirement under this rule.
Saluja's case was that she wished to prevent the proposal at the upcoming AGM that is aimed at appointing a director in her place at Religare. She submitted that this resolution was invalid as she has a fixed five-year term as per the Companies Act, 2013, and her contractual rights are being violated. She was appointed to her role in 2020.
Saluja's main demand was that Religare should be prevented from voting or implementing the resolution to oust her from the board.
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