The Company Law Board (CLB) today appointed an observer for the Annual General Meeting (AGM) of telecom services provider Unitech Wireless amid a spat between joint venture partners Unitech and Telenor and has ordered video recording of the meeting.
Observing that there was a conflict between real estate major Unitech and its foreign joint venture partner Telenor with respect to management and funding of Unitech Wireless -- which offers telecom services under the brand name Uninor -- the CLB said it was necessary to appoint an observer for accurate proceedings of the AGM.
Unitech and its joint venture partner, Telenor of Norway, have been involved in a public spat for months over several issues, including management and funding of the JV.
The CLB appointed one Kamal Aggarwal as observer of the meeting and asked him to record the proceedings, which should be submitted within three days before it.
It also directed the chairman of the board meeting to record the proceeding of the AGM on video.
However, the CLB has asked both sides not to give publicity regarding the appointment of the observer. The CLB's directive came after both parties alleged that their partner was using the media against them.
The meeting will be held on schedule at 1500 hours today at Unitech Wireless' registered office in Saket, Delhi.
Unitech and its associate firms had moved the CLB seeking the appointment of independent observers for the AGM.
Telenor Asia holds a 67.25% stake in Unitech Wireless (which offers services under the Uninor brand name), while Unitech holds the remaining 32.75% stake through its associate companies.
Unitech Group had dragged Telenor to the CLB alleging mismanagement in operations of the joint venture by the Norwegian partner, alleging that Telenor and its key executives had failed to obtain project finance for Uninor when it was available.
The partners' spat over a rights issue has also reached the courts and the companies are believed to be involved in arbitration proceedings in Singapore to resolve the matter.
A rights issue is a way in which a company can sell new shares in order to raise capital. Shares are offered to existing shareholders in proportion to their current shareholding, respecting their preemption rights.
Uninor holds a pan-India licence to offer mobile telephony services in 22 Indian circles. Its services are available in 13 circles like UP (West), UP (East), Bihar, West Bengal and Tamil Nadu, but it is yet to receive spectrum in some circles, including Delhi and J&K.
