Finolex promoter feud: Shareholders boot out two directors
MUMBAI , BENGALURU : Promoter feud at Pune-based Finolex Cables Ltd has led to the rejection of two directors, making it the second public company in recent times where such discord led to the rejection of board members. Over 93% of promoter votes were cast against the resolutions ratifying the appointment of Achyut Dhadphale as non-executive non-independent director and Kshtija Wadatkar as non-executive independent director, voting data from a stock exchange disclosure showed. Orbit Electricals Pvt.
Ltd, a promoter entity controlling nearly 31% stake in Finolex Cables, likely voted against the resolutions. Prakash Chhabria, one of the promoters battling his cousin, holds a majority stake in Orbit. At Finolex, two opposing camps led by Prakash and his cousin Deepak Chhabria have been battling for over seven years over control of the ₹16,000-crore company.
They have been consistently voting against proposals backed by their respective rival camp, casting a cloud over interests of minority shareholders and sparking complaints over corporate governance. Interestingly, another instance of promoter infighting affecting board composition at a listed entity happened at Hikal, where the Hiremath and Kalyani families are sparring over the ₹3,800-crore chemicals company. Voting in Finolex ended on 22 December, while that in Hikal ended three days later.
Veteran industrialist Baba Kalyani was evicted from Hikal’s board after a 31-year-long stint as over 50% of the promoter votes were cast against a special resolution to re-appoint him. This, even as a majority of the public shareholders voted in his favour. When contacted, Sameer Hiremath, managing director, Hikal said Kalyani’s absence has no bearing on the operations of Hikal as
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