Lodhas wins board war in MP Birla’s flagship, Birla Corp
According to the stock exchange filing, all resolutions of Birla Corporation were passed by an overwhelming majority, except for the resolution to appoint Rameswar Thakur as an independent director, following a proposal from Punjab Produce and Trading Co ( PPTC), which was part of MP Birla Group headquartered in the Birla building. The board of directors of Birla Corporation had also recommended against the resolution. Lodhas alleged that fraudulent attempts were made to vote illegally with the aim of subverting the professional management of Birla Corporation.
“These imposters are now liable for cyber-intrusion, theft and misappropriation of property,” said Debanjan Mandal, partner, Fox & Mandal. “It is clear that these crimes were committed by rogue elements who descend to new lows each year before the AGM of Birla Corporation Limited.”
“The boards of the companies that these impostors sought to represent have decided to take adequate legal steps to ensure that such crimes do not go unpunished,” Mandal added.
On the other hand, in a statement released by PPTC, the voting rights exercised by certain entities of the promoter group of Birla Corporation (BCL) during its AGM were illegally and fraudulently invalidated by the company, to illegally allow HV Lodha to retain some semblance of control over the business. Electronic votes validly cast via NSDL by three charitable entities of the Promoting Group (holding 13.9% of the votes) were maliciously considered invalid.