J&N okayed to up capital

NEW DELHI, JAN 6: The Company Law Board (CLB) has allowed the paint maker Jenson and Nicholson India Limited (J&N) to go ahead with its preferance shares for expansion. The board in its order said the decision to allow J&N to raise capital was taken after taking into account the holding back of some information by the petitioners, Turner Morrison.

Earlier, in November last, the CLB had restrained the company from issuing preference shares in an ex-parte interim order on a petition by Turner Morrison Limited. “The company has already alloted preference shares worth Rs 8.7 crore as against Rs 10 crore and it has already received subscription for the balance Rs 1.3 crore, our order in this regard has become infructuous,” CLB order said.

However, the order said whenever J&N proposes to issue further shares, the company should inform Turner Morrison, which owns less than four per cent of the J&N equity. Turner Morrison Limited and group companies filed the petition under Section 397 and 398 of the Companies Act 1956 which deals with the continuation of pending legal proceedings taken by or against the company.