Finolex cables crisis escalates ahead of AGM representative advisory firms raise operational issue
Proxy advisory companies Stakeholder Empowerment Services (SES) and InGovern Research have accused Deepak Chhabria-led Pune-based Finolex Cables of misleading shareholders. They allege that Finolex Cables has violated the provisions of the Companies Act and SEBI norms. This is the reason why proxy advisory companies have advised shareholders to reject the proposal for appointment of –PR Barpande, Avinash Sridhar Khare and Firoza Fredoon Kapadia as additional directors. He has been on the board of directors of the company since 30 September 2020.
Mahesh Viswanathan, CEO, Finolex Cables, rubbished the allegations and said that Prakash Chhabria is behind all this. Prakash Chhabria is the brother-in-law of Deepak Chhabria, chairman of Finolex Cables and chairman of Finolex Industries.
Finolex Cables was founded in 1958. The company, worth about Rs 7,500 crore, manufactures electrical and telecommunication cables. It is the flagship company of Finolex Group. The annual general meeting of the company is to be held on Tuesday.
Orbit Electricals Finolex Cables is part of the nearly $3 billion Finolex conglomerate. These include Deepak Chhabria’s Finolex Cables and Prakash Chhabria’s Finolex Industries. Orbit holds a 30.7 percent stake in Finolex Cables. Finolex Industries holds 14.5 per cent stake in the company and is operated by Prakash Chhabria, who is Deepak Chhabria’s brother in a relationship. He has a dispute with Deepak Chhabria.
Four directors are same in all the three companies. These are… Deepak Chhabria and Prakash Chhabria and Sunil Pathak and Sanjay Ashar.
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