Without Modi: The process of removing Lalit Modi’s mother Bina Modi from the board of Godfrey Phillips India has begun. American advisory company Glass Lewis has appealed to the company’s shareholders to vote against a proposal to make Bina Modi chairperson and MD during the Annual General Meeting (AGM). Godfrey Phillips India’s AGM is scheduled to be held on September 6. This appeal of the American company is being considered a big setback for the troubled Bina Modi.
Sameer Modi may get his place back on the board
According to a report in the Economic Times, Glass Lewis has appealed to the shareholders to vote against the decision to remove Bina Modi’s son Samir Modi from the company’s board. Bina Modi is 79 years old, so at least 75 percent of the shareholders will be required to re-appoint her. She is given 5 percent of the company’s net profit as commission every year. Glass Lewis has said in its report that considering her payment, shareholders should avoid re-electing her.
Modi family owns 47 percent stake in the company
US company Philip Morris Inc. has a 25 percent stake in Godfrey Phillips India, which manufactures tobacco products. The Modi family owns about 47 percent of the company. The report also said that there was no solid reason for removing Sameer Modi from the company. According to Glass Lewis, there are disputes going on in the promoter group. Bina Modi and her children are involved in these disputes. Those who raised questions on Bina Modi have been removed from the company’s board. Sufficient reasons were not given for removing Sameer Modi. This is raising concerns about his working methods.
Samir Modi has accused the board members of attacking him
Sameer Modi has alleged in a Delhi court that some board members had conspired to attack him in the board meeting on May 30. Those directors have filed defamation charges against Sameer Modi. Glass Lewis said that the board has accused Sameer Modi of misbehavior. However, no concrete evidence has been provided in support of these allegations. In such a situation, shareholders should also consider his re-appointment.
Read this also
Vande Bharat: From this year you will be able to enjoy Vande Bharat sleeper train, you will soon get a gift from the railways