Birla Corporation Ltd, the flagship company of the MP Birla Group, on Friday said resolutions supported by the company’s management, which were put to vote at the annual general meeting, were carried by a majority.
The lone resolution moved by The Punjab Produce and Trading Co, one of the investment firms of the MP Birla group, was rejected by the company’s shareholders at the AGM.
This comes just a few days after the three cable manufacturing companies of the MP Birla group, secured major wins at their respective AGMs concluded last month.
According to the voting results of Birla Corp filed on the stock exchanges, Rameshwar Singh Thakur, a nominee of Punjab Produce as a non-executive non-independent director of the company, received 29.66 per cent of votes cast in his favour.
The voting results also showed the resolution for appointment of Arvind Pathak as MD & CEO of the company, received 99.99 per cent of votes cast in its favour.
The shareholders of the three cable manufacturing companies had voted against the induction of nominees of The Punjab Produce & Trading on the companies’ board of directors at their respective AGMs, which was held on September 23.
“A vast majority of shareholders from among financial institutions and retail investors voted overwhelmingly in support of Birla Corporation Ltd’s management and helped defeat attempts to disrupt the company’s operations. Investors have clearly demonstrated their faith in the leadership of Chairman Harsh Vardhan Lodha,” Debanjan Mandal, partner, Fox & Mandal, said in an official statement.
According to Lodhas, fraudulent attempts were made to unlawfully cast votes with the aim of subverting the professional management of Birla Corp. In the process, major crimes such as impersonation and cyber trespassing were committed by people not authorised to vote.
“These impostors are now liable to face prosecution for cyber trespassing, theft and misappropriation of property,” Mandal said.
However, in an official statement The Punjab Produce and Trading Co said the voting rights exercised by some promoter group entities of Birla Corp at the AGM were “illegally and fraudulently invalidated ” by the company to unlawfully allow HV Lodha to maintain a semblance of control over the company.
“Electronic votes validly cast through NSDL by three charitable entities of the promoter group (holding 13.9 per cent votes) have been mischievously considered invalid. Also, votes cast through NSDL by three promoter group investment companies (holding 23.4 per cent votes), have not only been considered invalid, counter votes by persons illegally claiming to be directors of these three entities, not cast during the AGM, have been taken to be valid votes, thus completing the circle of manipulation to suit the nefarious agenda of HV Lodha,” it said in a statement.
Further, Punjab Produce and Trading, is also exploring legal recourse against “such blatant and fraudulent actions by the Chairman and Directors of BCL, its officers and the scrutiniser, and will also file criminal cases, if so advised”.