<p>A UK-based hedge fund, which is a shareholder in CIL, has threatened to take legal action against board members of the state-owned coal major for failure to protect interest of minority stakeholders.<br /><br /></p>.<p>“We are strongly considering a legal action against CIL’s individual board members for breach of fiduciary duties, if no clear commitments are made in the immediate future to provide parity of coal prices to import prices and rectifying the other breaches of fiduciary duties,” said The Children’s Investment Fund Management in a letter to CIL officials.<br /><br />The hedge fund, headquartered in London, is one of the shareholders of the Coal India Limited (CIL). <br /><br />It has alleged that the CIL board is not acting independently of the government on several key issues including coal pricing. <br /><br />The hedge fund further said it obtained a letter under the RTI Act, 2005 wherein Coal Secretary Alok Perti had written to former CIL Chairman N C Jha “to revise down the then effective price notification dated December 12, 2011 for various calorific bands and also set a deadline for the revision of January 31, 2012.</p>
<p>A UK-based hedge fund, which is a shareholder in CIL, has threatened to take legal action against board members of the state-owned coal major for failure to protect interest of minority stakeholders.<br /><br /></p>.<p>“We are strongly considering a legal action against CIL’s individual board members for breach of fiduciary duties, if no clear commitments are made in the immediate future to provide parity of coal prices to import prices and rectifying the other breaches of fiduciary duties,” said The Children’s Investment Fund Management in a letter to CIL officials.<br /><br />The hedge fund, headquartered in London, is one of the shareholders of the Coal India Limited (CIL). <br /><br />It has alleged that the CIL board is not acting independently of the government on several key issues including coal pricing. <br /><br />The hedge fund further said it obtained a letter under the RTI Act, 2005 wherein Coal Secretary Alok Perti had written to former CIL Chairman N C Jha “to revise down the then effective price notification dated December 12, 2011 for various calorific bands and also set a deadline for the revision of January 31, 2012.</p>