Mumbai, June 14: Britannia Industries has decided to appoint an independent firm to undertake an examination of all relevant papers and material and submit a report to the company’s board following the alleged breach of trust and confidence by ousted managing director S. K. Alagh.
Stating that an audit committee report does not exist as speculated in the media, the company said the directors were unanimous in their opinion that Alagh had conducted himself in a manner clearly “incompatible and inconsistent” with the duties and responsibilities he owed as MD of a public limited company to the board as well as the shareholders.
However, the company has not specified the time frame for undertaking the examination and submitting the report by CC Chokshi & Company.
Britannia, in a communication to the Bombay Stock Exchange, said Alagh had breached the trust and confidence which had been reposed in him by chairman Nusli Wadia and the board of directors.
Based on careful review of facts and documentary material, the board on June 3 unanimously resolved, that in these circumstances, Alagh's appointment as managing director be terminated with immediate effect and he was notified accordingly, the company said.
He was sacked a fortnight after the company had indicated that Alagh will not renew his contract when it expires next year. The board has dealt with the matter appropriately in the annual accounts for the financial year ended March 31, 2003, and so have the company auditors in their audit report, Britannia said.