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Journalism of Courage
MARCH 30: Financial institutions led by Life Insurance Corporation of India Limited today opposed two resolutions of the liquor major Shaw Wallace and Company Limited at its 53rd annual general meeting pertaining to adoption of audited balance sheet of 1998-99 and designation of chairman M R Chhabria as a director not liable to retire by rotation.
The FIs – UTI, LIC, GIC and its subsidiaries – hold about 25 per cent equity shares in the company.
Both the resolutions were put on poll suo motu by chairman of the meeting P L Narsimhan, which was conducted immediately after the meeting, and was likely to sail through as the management holds more than 50 per cent stake in the company. The results would be announced late tonight.
This was the second occasion that FIs opposed sailing of resolutions of any company controlled by Manohar Rajaram Chhabria. They had recently opposed passing of similar resolution in another company – Dunlop India Limited – owned by Chhabria.
GIC representative Subuddhi said, we have been adviced to oppose these two resolutions and demand poll by our parent companies. Subuddhi said the resolution pertaining to adoption of balance sheet for the year ended June 30, 1999 was opposed due to several adverse remarks made by auditors Lodha and Company.
He said even the management of those companies in which FIs hold ten per cent shares invite them to come on the board, but Shaw Wallace did not have the decency to invite any of them to their board. Under the circumstances, how can one expect us not to oppose any resolution which resolved around designating M R Chhabria as a director of the company, not liable to retire by rotation, Subuddhi added.
Earlier, before putting on vote these two resolution, Narsimhan told FI representatives, that the company had given replies to querries raised by them through a letter dated March 24. But if you still want, we will put them to polls.
