In a filing to the BSE, Mangalore Chemicals and Fertilisers Ltd also informed that its shareholders at the annual general meeting held yesterday also disapproved the appointment of VS Venkataraman, who was earlier with the UB Group for 33 years, as director of the company.
The company said however that for the financial year 2016-17 it will go ahead with the transaction already entered into with Zuari Agro Chemicals Ltd (ZACL), stating that value would be less than Rs 300 crore.
MCFL had sought shareholders nod for ordinary resolution related to "the transactions/contracts/arrangements entered/to be entered into by the company with ZACL for purchase/sale of goods, availing/rendering of services, transfer of resources, lease of office space, sales and marketing services and cost recharge".
The company sought shareholders approval as "value of the transactions/contracts/arrangements with ZACL during the financial year 2015-16 exceeds 10 per cent of the annual turnover of the company", it had said in AGM notice to the shareholders.
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During the year, MCFL said the company would be within the limits prescribed under the acts and regulations and therefore it would not have any impact on its business.
MCFL's shareholders also disapproved the appointment of VS Venkataraman as director of the company.
United Breweries Holdings Ltd (UBHL) had nominated Venkataraman for appointment on the Board of Directors and accordingly the Board had appointed him as an additional director on October 19, 2015. UBHL had proposed him to be appointed as director of the company.
MCFL's share price settled at Rs 47.40 apiece, up 6.52 per cent, on BSE.
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