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regular-article-logo Saturday, 13 July 2024

Deepak Chhabria resigns as executive chairman of Finolex Cables

Cousins Dee pak and Prakash Chhabria have been engaged in a long feud for control of the company

Our Special Correspondent Mumbai Published 22.10.23, 09:06 AM
Deepak Chhabria.

Deepak Chhabria. File picture

Deepak Chhabria has resigned as the executive chairman of Finolex Cables after the Supreme Court set aside an order of the National Company Law Appellate Tribunal (NCLAT) that had upheld his position in the company.

Cousins Deepak and Prakash Chhabria have been engaged in a long feud for control of the company.

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Following his resignation, the possibility of the latter being nominated to the post sometime in the future is not being ruled out.

“We further wish to inform you that Deepak Chhabria ceased to be whole time director designated as “executive chairman” of the company with effect from October 16, 2023.

Further, we wish to inform you that the board at its meeting held on Saturday, appointed Nikhil Naik, non-executive director of the company, as chairman of the board with immediate effect and until conclusion of the next annual general meeting of the company,” Finolex Cables said in a regulatory filing to the stock exchanges.

At the AGM held on September 29, shareholders had voted against the proposal to re-appoint Deepak Chhabria as a whole-time director designated as an ‘executive chairman’ of the company for a period of five years with effect from July 1 to June 30, 2028. Nearly 72.34 per cent of the shareholders had voted against the resolution while 27.66 per cent were in favour. The company then did not disclose the results of the voting.

However, on October 13, a contempt petition was moved before the top court on the ground that despite its order, the declaration of the AGM result was being deferred till a judgment was rendered by the NCLAT.

This came as the tribunal issued an order that allowed Deepak Chhabria to continue as the chairman.

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