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National Company Law Tribunal applies stay on FHRAI AGM Item No 4

Friday, September 22, 2017, 14:14 Hrs  [IST]
HBI Staff |New Delhi

National Company Law Tribunal (NCLT) has stayed Federation of Hotel & Restaurant Associations of India (FHRAI) Annual General Meeting (AGM) scheduled tomorrow in New Delhi from discussing Item No 4 of the agenda notice. The Executive Committee(EC) of the Federation had included Item No 4 as Special Business to amend constitution of the Federation or the Articles of Association.

Hearing a stay application filed by Jose Dominic, Managing Director, CGH Earth Hotels,  NCLT has allowed a stay on Item No 4 of the agenda notice. While the AGM will happen as scheduled tomorrow, the Executive Committee will not be able to take up Item No 4 for discussion now.

“We drafted our application quite carefully. We wanted only Item no. 4 to be stayed. We could have defeated the motion at the AGM, but we were not sure about the proxies,” Dominic said.

 "It’s a slap on the face of those wanted to capture FHRAI and stay put for life time in power,” said a key industry leader from Delhi.

As reported by Hotalspiity Biz, Item No 4 was included to discuss Special Business to bring in a Constitutional Amendment to remove the 12-year-tenure provision for EC members that will become effective from September, 2018. FHRAI had amended their constitution in 2010 stipulating maximum 12 years for Executive Committee members in the Federation. As per the 2010 amendment, an EC member can remain in office only for 8 years continuously, and again for a four-year term, after a gap of two years.

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