Pipe maker Man Industries today said its board has withdrawn the powers of Vice Chairman and Managing Director JC Mansukhani after accusing him of indulging in anti-company activities like insider trading and misappropriation of funds.
The board withdrew the powers of JC Mansukhani at its meeting held on May 19 by passing a resolution in view of various acts and omissions committed by him against the interest and reputation of the firm, Man Industries said in a filing to the Bombay Stock Exchange.
The move follows reported differences JC Mansukhani had (JCM) with his elder brother RC Mansukhani (RCM), the chairman of the company.
Last month, the company had said that various promoter group entities controlled by the two brothers were no longer 'persons acting in concert' and a board meeting on April 22 decided to divide various promoter entities between two separate groups headed by JCM and RCM respectively.
JCM has also filed a police complaint against RCM alleging fraud in the remittance of funds abroad.
However, Man Industries said that its board found RCM's reply in this regard as satisfactory and found the said transaction to be "a commercial decision taken in the interest of the company and as per the authority given by the board".
JCM has also filed a petition before the Company Law Board and has sought interim relief alleging mismanagement of the affairs of the company.