Is Twitter Inc responsible for Twitter India or not? Karnataka HC asks Manish Maheshwari

While representing his company in a petition filed in the Karnataka High Court, Maheshwari said that Twitter Inc does not own a single share in Twitter India, which makes the latter an independent company. As per a report published by business newspaper (Mint), Maheshwari was cross questioned on the shareholding patterns.

During a court hearing of Twitter India versus Uttar Pradesh Police, Karnataka High Court Justice G Narendra probed into the shareholding pattern of the company and also sought reasons as to why Twitter Inc cannot be called for questioning over the case. The report was published in business newspaper Mint, which also stated that Judge Narendra’s order will be pronounced today (July 23, 2021).

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For the record, Manish Maheshwari, MD, Twitter India, was asked to report to Loni Border Police Station on June 24, following a notice issued by the Ghaziabad police. However, since Maheshwari is based out of Bengaluru, he moved the Karnataka High Court and the HC restrained the police from initiating any action against the Twitter India MD.

The matter was regarding a video that was circulated on the platform, in which an elderly man from a certain community was thrashed by some young men and was forced to chant slogans of a certain belief. Claiming that the video was shared with a purpose of causing communal problems, the Ghaziabad police booked Twitter India, Twitter Inc, along with news portal The Wire, two journalists and a few Congress leaders, along with writer Saba Naqvi.

Replying to Justice Narendra, Maheshwari’s counsel CV Nagesh clarified that Twitter Inc is a parent company. “We have absolutely nothing to do with that (Twitter Inc). Twitter India is an independent organisation and independent institution.” Answering the questions on promoters, he said, “Twitter India is only an affiliated company of Twitter Inc.”

Justice Narendra clearly stated that there is no such thing as an affiliated company. It can be called a sister company or associate, based on the shareholding and memorandum of association. “Let me go on record that Twitter USA (Inc) does not hold a single share in Twitter India. That’s why I am submitting that it is a totally different entity,” Nagesh announced in the hearing.

Ghaziabad police’s counsel P Prasanna Kumar warned that Twitter Inc might have to face the “consequences for saying that they do not know who Twitter India is”. He further clarified that his instructions were that 99% of shares of Twitter India are with the US headquartered Twitter Inc. He went on to add, “All the colleagues of the petitioner have been representing Twitter India, as well as Twitter Inc before the Central government agencies even to this day. This won’t happen unless the two entities are connected.”

Justice Narendra, however, wasn’t convinced and said that the board of directors can authorise anybody to represent them for legal matters. Twitter India’s counsel explained that 9,999 shares of the company are owned by Ireland-headquartered Twitter International Company and 1 share is held by Twitter Netherlands. He offered a memo on record on Friday that Twitter USA is not even a shareholder.