The ongoing family dispute at Pune-based Kirloskar group has resulted in the ouster of top corporate executive Kishor Chaukar from the board of Kirloskar Brothers Ltd (KBL).
While Chaukar’s reappointment to the company board was supported by Sanjay Kirloskar, his brothers Rahul and Atul opposed the move.
The Rahul and Atul camp accused Chaukar, the former Managing Director of Tata Industries and ICICI Securities, of siding with Sanjay and thereby hurting the minority shareholder interest of KBL. They also said that due procedure was not being followed in his reappointment.
At a recent annual general meeting, 34 per cent of the shareholders, including Rahul, Atul and Kirloskar Industries Ltd (KIL), voted against Chaukar’s reappointment. The resolution needed at least 75 per cent votes in favour to be passed.
“Chaukar’s re-election as KBL independent director (ID) would not have been in the interest of KBL’s shareholders. KIL believes that KBL has been trying to deceitfully push through Chaukar’s reappointment on the company board as a purported independent director. It was therefore our duty to all KBL minority shareholders to vote against Chaukar’s reappointment,” a KIL spokesperson told BusinessLine.
A spokesperson for the Kirloskar family (Rahul) confirmed that “The entire Kirloskar family other than Sanjay (and his immediate family) has voted against the appointment of Chaukar. Atul and Rahul have approached the NCLT Mumbai along with KIL highlighting the continued acts of oppression against minority shareholders and mismanagement of KBL by Sanjay Kirloskar and members of his immediate family.”
When contacted Chaukar said there was no official communication to him on the matter. But in an affidavit filed by him in the NCLT in August, Chaukar had said that the allegations being made by Rahul were baseless and defamatory
When contacted Sanjay Kirloskar did not offer any comment. However, a source close to him said: “Statutory procedure has been followed and everything that Kirloskar Industries Limited has stated is obfuscating facts.”