Ownership dispute at Hikal ends Baba Kalyani's 31-year board stint
ownership dispute between Bharat Forge chairman & MD Baba Kalyani and his sister Sugandha Hiremath has reached a turning point at chemical company Hikal. After a shareholder vote, Baba's extensive 31-year tenure as a board member has come to an end.
The cause of this change lies in the requirement for non-executive, non-independent directors, like Baba, to secure a certain percentage of votes for continued tenure.
Turning 75 on January 7, Baba needed support from 75% of Hikal's shareholders to remain on the board. However, he managed to secure only around 52% of the votes.
About 48% of the shareholders who cast their votes were against his reappointment, as revealed in regulatory filings.
The anticipated outcome was influenced by Sugandha's substantial 35% stake in Hikal, as of September-end. As reported earlier, she voted against her brother's continuation as a director, contributing to the defeat of the resolution that required 75% support.
The month-long voting process, combining postal ballot and electronic voting, concluded on December 24, with approximately 79% of Hikal shares voted.
The institutional landscape mirrored the divide, with about 27% of Hikal's institutional holders opposing the reappointment resolution. Meanwhile, 43% of non-promoter and non-institutional shareholders favored Baba's removal from the board.
This development occurs amid an ongoing legal battle between the siblings, with Sugandha insisting on Baba transferring his 34% share in the chemical company, citing a family arrangement from 1994.
