Birla Corp puts off decision on chief

The MP Birla group flagship, Birla Corporation, held its first board meeting after the demise of Priyamvada Birla at a city hotel instead of the Birla Buildings. The board, however, did not take any decision on the company's next chairman.

Financial institutions played a key role at the meeting, which began with a condolence motion in the memory of Priyamvada Birla.

According to sources, one of the directors objected to Lodha chairing the meeting. However, the financial institutions, represented by nominees from Industrial Development Bank of India (IDBI), Unit Trust of India (UTI) and ICICI Bank, spoke in favour of Lodha.

They said in the past, meetings that were not attended by Priyamvada Birla were chaired by Lodha and hence the same rule should apply. Nandini Nopany, daughter of KK Birla and a board member, said she had no objection to Lodha acting as chairman.

The members approved the results for the first quarter and the extension of Managing Director KC Mittal's tenure by two years.

However, there was no discussion on the appointment of a chairman or the date of the company's annual general meeting. Sources said the issues would be taken up at the next board meeting.

The board decided that the financial institutions would be asked to fill up the vacancies in the various committees of the company. In each of them, a seat had become vacant following the death of Priyamvada Birla.

The meeting also marked the first public appearance of Lodha and his younger son, Harsh V Lodha, who is a director on the board of the company.

Lodha refused to make any statement to mediapersons but confirmed that he had chaired the meeting. He said, "Whatever has happened is for the good of the company."

Birla Corporation posted a net profit of Rs 29.4 crore for the first quarter, compared with Rs 20.2 crore in April-June 2003. The total income (net of excise) stood at Rs 301.7 crore.

The venue of the board meeting was changed late on Monday evening. Sources said the move to change the venue at the last minute was significant as it ensured a neutral location. Moreover, Lodha had not visited the Birla Buildings since the will was opened.

What the will says
Excerpts: This will is made to protect the individual identity of Late MP Birla, the property now standing in my name is bequeathed to RS Lodha.

It is apprehended if the properties travel to other persons of the Birla family then the good name of MP Birla might be sent to oblivion.

Since we do not have any issue so to protect the entire MP Birla properties of which I am the absolute owner, by this will I give them to RS Lodha and his family.

After execution of the will, Lodha will be the absolute owner of the property and I express that Lodha shall be executing the will for obtaining probate in the capacity of executor from an appropriate court of law.