M.A.M. Ramaswamy, Chairman of Chettinad Cement Corporation, was eased out of the board by the shareholders at the company’s 51st Annual General Meeting held here on Wednesday.
When a resolution for his reappointment as director came up for approval, some shareholders opposed it and proposed an amended resolution seeking not to reappoint Mr. Ramaswamy. They also sought to restrain the management from filling up the vacancy arising out of his retirement.
The amended resolution was then put to vote and carried out successfully.
Ramanathan Palaniappan, who retired as director and was eligible for reappointment, however, said he was not keen on reappointment. Hence, both the vacancies have not been filled up.
Addressing the shareholders, Mr. Ramaswamy’s adopted son and Managing Director M.A.M.R. Muthiah recalled the services rendered by his father to the society. He also announced that he would be talking to the board members to make his father as Chairman Emeritus of the company for life. The board is scheduled to meet on September 4.
Family feud
Since Monday, there was intense speculation about a possible removal of Mr. Ramaswamy from the board at the AGM. On Tuesday, a day before the AGM, the Central Bureau of Investigation arrested Registrar of Companies in Chennai for reportedly taking a bribe of Rs.10 lakh from Mr. Ramaswamy, who, it was alleged, wanted the RoC to declare the AGM null and void. Later on Tuesday evening, Mr. Ramaswamy was hospitalised.
Tame Affair
The AGM itself was a tame affair with only five speakers raising questions about the financial performance. Security was beefed up at the venue, and the media was denied entry. The commencement of the meeting was delayed to enable the unwell chairman to attend it. As Mr. Ramaswamy did not turn up even after 15 minutes, another director L. Muthukrishnan was asked to chair the meeting. The customary chairman’s speech was missing. The two nominees of the State government did not attend the AGM.
When the original resolution seeking reappointment of Mr. Ramaswamy was proposed, a shareholder said that Mr. Ramaswamy should not be disturbed as the latter was an aged person and was finding it difficult even to walk. By that time, another shareholder proposed an amended resolution seeking not to reappoint Mr. Ramaswamy.
The AGM witnessed passing of 11 resolutions such as adoption of statement of accounts, declaration of dividend, change of auditor, ratification of remuneration payable to cost auditors, appointment of non-executive director and two independent directors, and increasing the borrowing limits.
