German stationery maker Faber-Castell Aktiengesellschaft has filed a case against its Indian joint venture partner with the Company Law Board (CLB), alleging mismanagement.
The German company holds a 90% stake in the Indian arm, A.W. Faber-Castell (India) Pvt. Ltd and Ors, and the balance rests with Anup Bhaskaran Rana, its managing director.
Filed under Section 397-398 of Companies Act, 1956, on 13 August, the complaint accuses Rana of misappropriation of funds, diversion of funds and fraud. A shareholder or board member can file a lawsuit under these sections for “mismanagement” and “oppression” by other board members.
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