The Ministry of Corporate Affairs has stated that the government should include a provision in the shareholders’ agreement of the Tata Group giving the government special voting rights in case Tata Communications wants to increase its authorised share capital. The ministry has told DoT that the government could also issue equity shares with differential voting rights in such a manner as to retain 25 per cent in Tata Communications. This comes after DoT sought the ministry’s views on whether the government could stop Tata Communications from increasing its authorised share capital since it could dilute the government’s stake in the company. The Tata group company plans to increase its authorised share capital from Rs 3 billion to Rs 21 billion. The government owns 26.12 per cent stake in the company and does not intend to subscribe to any new shares.
