Change in shareholding does not lead to change in ownership, AJL tells HC

Associated Journals Ltd (AJL), the publisher of National Herald, told the Delhi High Court on Monday that transfer of its majority shares to Young India (YI), in which Congress chief Rahul Gandhi and his mother Sonia Gandhi are shareholders, would not make them the owners of its premises here which it has been asked to vacate.

AJL, which has challenged a Single Judge order directing it to vacate the premises in the national capital, told a Bench of Chief Justice Rajendra Menon and Justice V.K. Rao that even a 100% shareholder of a company would not become the owner of its assets.

‘Owner of its assets’

The submission was made by senior advocate Abhishek M. Singhvi, appearing for the publisher, who said it was a “complete antithesis of company law to say that change in shareholding of a company would lead to change in lessee of properties owned by it”.

“Even a 100% shareholder of a company does not become the owner of its assets,” he argued in response to the main contention of the Centre that by changing shareholding of AJL, YI “clandestinely” and “surreptitiously” transferred the ownership of the Herald building.

Source: Read Full Article