Delhi High Court rejects Reebok's request to be a Limited Liability Company in India | Maqvi News

The Delhi High Court ruled to uphold the order made by the Registrar of Companies stating that sportswear brand Reebok cannot change its status from a ‘Unlimited Liability Company’ to a ‘Limited Liability Company’ in India, dismissing a petition made by Reebok. 

“The anxiety on the part of the Registrar of Companies that the creditors and stakeholder should not be left high and dry cannot be said to be completely unjustified,” said Justice Subramonium Prasad at the hearing, ET Bureau reported. 
 
The court noted that the interests of creditors to Reebok as well as its shareholders must be considered as part of its decision. It was also stated that several prosecutions have been filed against the business by the Serious Fraud Investigation Office for alleged offences under the Indian Penal Code and the Companies Act. 

According to the court, Reebok failed to issue a public advertisement to announce its plan to become a Limited Liability Company to enable creditors and stakeholders to make objections. The Registrar of Companies also notes that it had not been given a no-objection certificate from Reebok’s shareholders regarding the decision, the Economic Times reported. 
 
Reebok is based in the US and it retails in India on Aditya Birla Fashion Retail Limited’s e-commerce store. The brand also counts numerous stores across India, mainly on high streets and in malls.