Vote on Bajaj Tempo name change at EGM

The writ petition Bajaj Auto has filed in the Bombay High Court objecting to the change of name comes up for hearing on Wednesday. Both Firodia and Rahul Bajaj, Chairman, Bajaj Auto, declined to comment, saying it was ‘‘sub-judice’’.

While the EGM was off-limits to the media, shareholders who attended the meet said most members, barring Bajaj Auto, spoke for the resolution. Raghavan, a shareholder supporting Bajaj Auto, argued that, if at all, a name change was needed, the company could have been called ‘‘Bajaj Firodia’’.

In its writ petition, Bajaj Auto said Section 21 of the Companies Act and not Section 22 should have been applicable in this case. Abhay Firodia-controlled Bajaj Tempo has sought to change its name under Section 22 of the Companies Act, which requires an ordinary resolution which can be approved with a simple majority. Under Section 21, it would have to be passed with a special resolution, needing a three-fourth majority.

So, what next? According to legal experts, if the Bombay HC decides to admit the Bajaj Auto petition, then the EGM results will be held in ‘‘abeyance’’ till the case is settled. If the writ is dismissed, Bajaj Auto will ‘‘consider other areas of protest’’. But Firodias will claim victory because ‘‘by holding more than 50 pc in Bajaj Tempo, it should win the vote comfortably’’.