EIH withdraws preferential issue

kolkata: eih ltd is withdrawing the proposed preferential share issue. the counsels of the hotel major a chinoy, zia mody and sb mukherjee on friday committed to withdraw the proposed resolution which evoked strong reactions among shareholders. sebi also has issued notice to eih ltd, instructing them not to go ahead with the issue. the resolution was supposed to be placed at the 51st agm of the company.sources in the industry informed that following the commitment of eih ltd, the counsel of the petitioners has agreed to withdraw its complaint. on the other hand the court has instructed eih ltd to comply with the law in future while proposing any resolution. it may be mentioned that two shareholders filed petition against eih ltd earlier this month alleging the proposed preferential issue as illegal. sebi has also started investigating the matter following a few complain from the shareholders. the shareholders alleged that the offer has flouted sebi preferential issue guidelines as well as the take over code of the regulator. commenting on the court order ss mukherjee, the deputy md of eih ltd said, "we place utmost importance on ethical practices and good corporate governance." the company believes in upholding the interest of minority shareholders and does not wish to cause any dissatisfaction. eih believes that its submission to the court should dispel any doubts in the minds of all shareholders. incidentally, the shareholders in their writ petition had raised objections to resolution numbers 6,7,8,9 and 10. pursuant to the court ruling the company will go ahead with the other resolutions namely 6,7,9 and 10 which pertain to increase in authorised capital, increase in fii portfolio holding limits to 49 per cent and increase in borrowing powers. the resolution that evoked controversy seeks to issue equity shares or securities convertible in to equity shares at the option of the company to fiis, fis, companies and individuals irrespective of whether they are member of the company or not. the resolution however not pointed out the proposed prices and only mentioned that the aggregate amount will not exceed rs 400 crore or equivalent.