Mumbai, Mar 5: Shareholders of Essel Packaging on Friday urged the management to reconsider its decision on the appointment of current managing director Asok Kumar Goel as the chairman and wholetime director. Goel was set to replace current chairman Subhash Chandra, even though the media moghul was to continue to function as director on the board.
The company's extraordinary general meeting (EGM) saw the resolution pertaining to the appointment of Goel as chairman of Essel Packaging being dropped and kept in abeyance, according to a minority shareholder. The elevation of Goel was aimed at "harnesing human capital and resources available within the company and to provide wider opportunities for the existing senior management team".
"Some of us voiced our opinion against the change of guard and the management has agreed to keep the resolution in abeyance, while promising to convey our sentiments to Mr Subhash Chandra," a shareholder said.
Earlier a company release stated that "these changes will impartgreater effectiveness in management and will place the company in a stronger position for globalising its operations, on a professional and independent basis". The new management structure would also see current executive director Cyrus Bagwadia take charge as managing director of Essel Packaging.
Shareholders also cleared another resultion approving the company's intent to buyback upto 10 per cent of the paid up equity capital of the company (of Rs 15.41 crores) at a price range of Rs 250-300 per share. However, a lone minority shareholder Dinesh V Lakhani is believed to have opposed this resolution.
The company registered a gross income of Rs 180.68 crores and a profit after tax of Rs 25.9 crore for the year ended March 31, 1998.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.