The Company Law Board has upheld the appointment of Komal Chhabria Wazir as an alternate director to Manohar Rajaram Chhabria on the board of Shaw Wallace & Co.
In a late judgement yesterday evening, the principal bench comprising of P K Majumder and S Balasubramanian disposed of the application of the Central government under CA No 59 & 60.
The CLB is understood to have pointed out that under the Companies Act 1956, as well as Articles of the company permitted appointment of an alternate director under circumstances envisaged in Section 313 of the Act. This happens to be one of the privileges which is recognised by the law and there was no curb on the SWC board.
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Therefore, considering facts and circumstances of the case, CLB was of the view that the appointment of Komal Chhabria Wazir was not in violation of the September 96 order. As the question of considering the prayer in the application of the central government did not arise , the case thus stood disposed.
Giving a final decision yesterday the CLB has stated "till today the CLB has not curbed the powers of SWC board members in their individual as well as collective capacity except on certain financial powers exceeding a pre-determined limit".
Shaw Wallace authorities, when contacted, were not available for comment. The CLB, upholding the appointment, had observed that Shaw Wallace could have avoided a lot of controversy had they consulted the CLB prior to the appointment of Komal Wazir.They had also pointed out that it was desirable if the appointment was done at a board meeting, rather than through process of circulation. The CLB had on Monday said the induction was not a case of contempt of court as alleged by the DCA.