Samir Modi has raised recent issues over his mom Bina Modi’s management at Godfrey Phillips India, claiming the enterprise is in danger underneath her.
Modi hopes shareholders will vote with the corporate’s future in thoughts on the upcoming Annual Common Assembly (AGM), scheduled for September 6.
“I’m nonetheless the chief director. The shareholders will resolve whether or not to take away me. Glass Lewis says there isn’t sufficient info on why they need me out,” Samir informed BT TV, emphasizing the uncertainty surrounding his doable ouster.
Glass Lewis, a distinguished US proxy advisory agency, had suggested shareholders to vote in opposition to Bina Modi’s reappointment as chairperson and managing director. The agency additionally urged shareholders to reject the proposal to take away Samir Modi from the board.
Bina’s reappointment would require the approval of 75% of the shareholders, a threshold she should meet attributable to her age. If reappointed, she is entitled to obtain 5% of the corporate’s web earnings as fee for every monetary 12 months.
“She’s (Bina) 80 years previous, not 25. I’m turning 55 and nonetheless have 25 years forward of me. I’ve had extra coaching, labored carefully with my father, and have expertise in constructing manufacturers. For over 30 years, I’ve added worth to the corporate—so how is it that all of a sudden, my contribution is in query?”
Samir’s criticisms of his mom stem from what he sees as a gradual decline in firm efficiency. He supported her appointment following his father’s loss of life in 2019, believing it was within the household’s and shareholders’ finest curiosity. Nevertheless, Samir now argues that underneath her management, dividend payouts have fallen to among the lowest within the trade, with Godfrey Phillips distributing simply 33%, in comparison with ITC’s 84%, VST’s 77%, and Philip Morris Worldwide’s 103%. He additionally famous the corporate’s declining market share, which dropped from 10.9% to 9.2%.
In an ongoing authorized battle, Samir has pleaded for particular person voting rights for relations, given the dearth of unanimity throughout the household belief. Samir and his brother Lalit, who share related views, maintain roughly 12% every, whereas Bina and her daughter Charu maintain an equal share and assist Bina’s management.
Samir expressed his concern over the unresolved battle, revealing that he has made quite a few makes an attempt to resolve the difficulty, together with standing exterior his mom’s home and workplace for hours, searching for solutions to the explanations behind their dispute. He emphasised that his objective is to finish the battle and give attention to constructing the enterprise, not destroying it.
Samir talked about that his late father, KK Modi, had envisioned a future the place the household would work collectively to protect the legacy and continuity of the enterprise. He shared that his father’s want was for his mom and sister to run chemical substances enterprise whereas he and his brother managed Godfrey Phillips India (GPI). Samir urged for a division of tasks that might defend the household legacy, guarantee succession, and preserve continuity.