Finolex Cables yet to disclose AGM voting results on reappointment of executive chairman
Finolex Cables has not yet disclosed the outcome of voting by shareholders pertaining to the resolution related to the reappointment of Deepak Chhabria as an «executive chairman» in its annual general meeting (AGM) held on September 29.
Finolex Cables' scrutiniser, in a disclosure submitted to the stock exchange, has revealed that, in light of the Supreme Court's directive, the voting results are kept in abeyance until the National Company Law Appellate Tribunal (NCLAT) passes its final orders.
This development has arisen amid an ongoing dispute between the two cousins, Prakash Chhabria and Deepak Chhabria. Finolex Cables had proposed a resolution for reappointing Deepak Chhabria for five years, from July 1, 2023, to June 30, 2028.
Last Tuesday, the Supreme Court vacated the NCLAT's interim direction and allowed Orbit Electricals, led by Prakash Chhabria, to vote at the Finolex Cables AGM.
However, in its order, the Supreme Court has said that any action taken on the proposed resolution pertaining to the appointment of the executive chairperson will be subject to the outcome of the NCLAT order. NCLAT has reserved the order on September 21, 2023.
While Orbit Electricals holds around 31% stake in Finolex Cables, Prakash Chhabria, directly and through Finolex Industries, owns 15%.
Prakash is the biggest shareholder of Orbit Electricals, the promoter entity of Finolex Cables, while Deepak is the latter company's executive chairman.
Prakash Chhabria controls about 78% of Orbit Electricals, while KP Chhabria faction (father of Deepak Chhabria) and his children own around 7% stake.
Cousins Prakash Chhabria and Deepak Chhabria have accused each other of scheming to gain control of Finolex Cables. Prakash, the largest
