Century to appoint independent director

Century Textiles & Industries will appoint an independent director to fill in the vacancy created following the death of Priyamvada Birla.

The move assumes significance in the light of the fact that a representation on the Century board by any of the Birla groups "" Basant Kumar, Sudarshan Kumar and Chandra Kant "" would tilt the strength of the board to the family's favour.

Three branches of the Birla family have equal representation of the board. In fact, all the chiefs if the branches themselves are on the board. Basant Kumar is the chairman of the company.

A top source in the Birla family said a reputed independent director would be inducted in due course. "We will appoint somebody with a national repute," the source pointed out. He ruled out the possibility of Kumar Mangalam Birla or Manjushree Khaitan "" grandson and daughter of B K Birla "" joining the board.

Priyamvada Birla, who breathed her last on July 3 in Kolkata, was associated with Century over the past three-and-half years. Her reappointment was due at today's annual general meeting.

The resolution, which became infractuous after the demise of Priyamvada Birla, was redrafted. Sudarshan Kumar Birla, who presided over the meeting in the absence of the chairman B K Birla, said : "She can not be reappointed. Therefore, the vacancy being created with her death can not be filled up at this meeting."

The shareholders passed a resolution who proposed to reduce the number of directors from 11 to eight. The reduction was owing to resignation of board slots by the representatives of Life Insurance Corporation , Unit Trust of India and Industrial Development Bank of India.

Meanwhile, the Birla family sources said the possibility of an out-of-the court settlement with R S Lodha, who claimed to the recipient of the Rs 5,000 crore worth of assets of the M P Birla group, seemed to be bleak. "Lodha has moved the Calcutta High Court yesterday to probate the will. Now the issue will be settled at the court of law," they added.