Amid the ongoing boardroom battle at Godfrey Phillips, the Delhi High Court rejected Ruchir Modi’s plea to refrain Bina Modi from voting on behalf of KK Modi’s Family Trust for her own reappointment, at the company’s 87th Annual General Meeting (AGM) scheduled for 2.30 pm, today (September 6). The Delhi High Court on Thursday permitted Bina Modi, the managing director of Godfrey Phillips India, to exercise her voting rights at the AGM.
The Family Trust holds a 47.5 per cent stake in the company whereas global tobacco giant Philip Morris International holds just over 25 per cent. With Bina Modi now allowed to vote, the future of her son Samir Modi in the company is jeopardy as he faces the possibility of being ousted from his role. At the AGM, the company will take significant decisions including the reappointment of Bina Modi as managing director. Her reappointment as MD requires a 75 per cent majority vote, making her vote essential.
The court also clarified that if, at any point during the case, it determines that Bina Modi’s appointment as managing director was improper, she will have to resign immediately. “In case a direction is passed, at any stage of this Suit, that her appointment as a Managing Director of GPIL was against the terms of the Trust Deed or the Trust Act, she shall immediately tender her resignation from the said position and not claim any equity only because of the dismissal of the present application. This shall also be informed during the AGM of GPIL, which is scheduled to be held on 06.09.2024,” the judgement stated.
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The court also directed Bina Modi to file a half-yearly affidavit detailing the remuneration and other benefits she receives as managing director of the company. This order mandates full transparency from Bina Modi regarding her compensation package, aligning with corporate governance norms and her fiduciary duties to the KK Modi Family Trust and the company.
Samir Modi and his brother Lalit Modi are engaged in a tussle for power with their mother Bina Modi over inheritance that could be worth anywhere between Rs 11,000 -30,000 crore, according to sources.
Earlier in an interaction with FinancialExpress.com, Samir Modi, while maintaining that he is willing to do whatever it takes to end the family dispute, said that he hopes the shareholders will vote for the right reasons. He referred to the current board as ‘defunct’, referred to his mother as ‘dictator’ and said that the business is at ‘risk of losing almost everything’ in the hands of an ‘inexperienced’ head.
From: financialexpress
Financial News
