Cyclists Touring Company Case 1906
Those who have studied law (even Second Year Bcom had this case) – LLB, CA, Company secretary, CWA – would be familiar with this company. This is a very famous company (it is still in existence) and was formed to help the cyclists. Fairly obvious its main aim was to protect the cyclists, lobby for separate lanes, ask for concessions, parking space etc.
Their main aim was to promote cycling and create fun events, picnics, etc and promote cycling. This was an old company..and in 1906 it wanted to include Motorists also as part of its members..However the English Courts threw out the petition (amendment to the Articles of Association) saying “Cyclists need to be protected from Motorists” so it cannot be allowed.
In 1906 CTC asked the High Court to amend its constitution so that it could admit all tourists, including car-drivers. A majority of members – 10,495 to 2,231 – had voted the previous year for the change to take place. The court ruled that CTC could not protect the interests of cyclists and drivers at the same time and denied permission.
In India we have a body called Amfi which was formed to protect the interest of the MANUFACTURERS of mutual funds. Only the manufacturers control the body. The Registrars (there are about 2 of them!!), the research organisations, distributors, trainers, software and other service providers to the mutual fund industry etc. do not have any role in the conduct of management of this august body.
Fairly obviously a manufacturer’s body cannot preside over the union members, I presume? Why do we need a union? for the betterment of the employees, for collective bargaining, for suggesting changes, for improvement, for training, for suggesting entry, exit and discipline rules and regulations. Well, well, some of the members believe that it is the manufacturer’s body that should do it.
I differ. That will be my pet peeve with the workers seeking their place under the sun.
They need media space, television and paper are glam are they not? It is easy to get it if you are part of the manufacturer’s body.
However somebody has to tell them that a Cyclists body cannot have Motorists as members.
It is called Conflict of Interest.
Kamal Garg
Like in law, an “adjudicating agency” cannot be “investigating agency” because of conflict of interest. And similarly if the main objective for creation of AMFI was to protect interests of investors then of course the interest is not met and jeopardized. I wonder why SEBI does not look at these issues more particularly when Indian investor is shifting from pure retail participation to institutional participation (read MFs).
sandeep
SEBI is a very different dish.
It is an adjudicating agency, an investigative agency and also the defence lawyer. It is all in one. đŸ™‚