Legal Tussle Over Byju's Stake: GLAS Trust Moves to Halt AoA Amendments

GLAS Trust Company LLC has petitioned the NCLAT to prevent changes in Aakash Educational Services' Articles of Association. The move aims to protect minority shareholders' rights amid Byju's financial troubles. A contentious EGM is set to discuss the amendments, opposed by stakeholders like Singapore VII Topco.

GLAS Trust Company LLC has petitioned the National Company Law Appellate Tribunal (NCLAT), seeking a stay on amendments in the Articles of Association (AoA) of Aakash Educational Services. This comes amid concerns that the changes could negatively affect the Corporate Insolvency Resolution Process (CIRP) tied to the debt-laden Byju's.

A Chandigarh-based bench, consisting of Justice Rakesh Kumar Jain and Jatindranath Swain, has issued a notice to Aakash Educational Services. The appeal arises as Byju's, the operator of Aakash under Think & Learn Pvt Ltd, faces objections from minority stakeholders.

The extraordinary general meeting (EGM) of Aakash Educational Services was planned for November 20 to review these contentious amendments, which stakeholders like Singapore VII Topco contend could dilute their rights. Yet, subsequent legal challenges and a stay ordered by the NCLT have put the resolution process in flux, with the matter now approaching the NCLAT for further deliberation.

(With inputs from agencies.)