Financial institutions (FIs) failed in their bid to curb M R Chhabria's tenure at the ailing Dunlop India board. Chhabria has been designated as a director not liable to retire by rotation, while the FIs wanted the resolution "not liable to retire by rotation" to be replaced by "liable to retire by rotation."
Resolution 5 (a) involving Chhabria's designation as a director, that was opposed by the institutions at the 74th annual general meeting here on Thursday, was latter passed with as many as 8,408,109 polls in favour of the resolution, against a total of 14,664,293 votes polled.
For Resolution 5 (b), which ensured that Chhabria retire by rotation, 6,256,183 votes were found invalid and only one vote was in favour of the resolution.
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Life Insurance Corporation's nominee J S Zala, however, failed to replace former nominee R N Tripathi. Resolution 6 involving Zala's appointment, that was opposed by the management, was not carried. Of the 14,664,293 polls made, as many as 84,08,109 were voted against the resolution.
Adoption of the profit and loss account for the year ended March 31, 2001, the balance sheet and reports of the board of directors and the auditors thereon were also put to poll which however got passed. As many as 84,08,109 votes were in favour of the resolution against a total of 14,664,293 votes polled.
Dunlop, which manufactures tyres, had had shut its manufacturing unit at Shahgunj due to labour unrest. Salaries at the factory is due from January. The management cited failure on the part of the Board of Industrial Finance and Reconstruction (BIFR) to approve its draft rehabilitation scheme prepared by IDBI, and violent demonstration by the unions at the factory as major reasons for suspension of operation. Work will remain suspended until the situation comes under control.
Resumption of operations is, however, linked to mobilisation of funds and achieving a sensible understanding with the unions, said executives from the company at the AGM. However, the workers' union said the management is not keen on reopening the unit.