Amid the ongoing Godfrey Phillips promoter dispute, the Delhi High Court on September 5 denied Ruchir Modi's plea to block grandmother Bina Modi from voting at the 87th annual general meeting (AGM) on September 6.
The court refused to restrain Bina Modi from voting on behalf of KK Modi's Family Trust for her own reappointment.
The court's decision comes as a relief for Bina Modi, who holds a pivotal role in the company's leadership and controls 48% of the shareholding through the trust.
Additionally, Justice Naveen Chawla directed Bina Modi to provide semi-annual disclosures regarding the remuneration and benefits she receives as MD of the company, reported CNBC-TV18.
At the AGM, five ordinary resolutions and one special resolution will be put for approval from shareholders, including the removal of Samir Modi.
Last month, US-based proxy advisory firm Glass Lewis has advised the shareholders of Godfrey Phillips to vote "against" the special resolution seeking the reappointment of Bina Modi as Managing Director at the Annual General Meeting on September 6. Glass Lewis has backed Samir Modi's presence on the board.
As Bina Modi's remuneration exceeds the limits of Rs 5 crore or 2.5 per cent of the net profits of the company, Godfrey Phillips requires a special resolution, which has to be passed from a super majority of 75 per cent of the total votes polled.
Godfrey Phillips India, the flagship company of Modi Enterprises, is currently going through an intense board room and succession battle between Bina Modi and Samir Modi-led camps.
Samir Modi is the son of Bina Modi, who is heading the board of the company, which has decided not to renew or reappoint him as his term ends this year.
Samir Modi, who is on the board of Godfrey Phillips an executive director till his superannuation, is engaged in a slugfest with his mother.
Earlier, in June he had alleged Bina Modi of orchestrating an attack on him and of being stopped from participating in the board meeting of the company.
The proxy firm has observed that Godfrey Phillips' board has concluded Samir Modi's actions and performance constitute misconduct, however, there has been no public disclosure from the company to substantiate any of these claims.
Godfrey Phillips has also proposed to appoint Samir's sister Charu Modi on the board of the company for five years from September 7, 2024.
In Godfrey Phillips India, promoters own 72.58 per cent stake, in which the Modi family owns 47.48 per cent stake and the remaining 25.10 per cent is owned by Philip Morris Global Brands Inc.
For the financial year ended on March 31, 2024, Godfrey Phillips India, which owns cigarette brands like Four Square, Red and White, Cavanders, Tipper and North Pole, had revenue of Rs 5,274.68 crore.
It also manufactures and distributes brand Marlboro under a license agreement with Philip Morris.
Besides, it also operates the convenience store chain 24Seven, which it last month had announced to exit from this loss-making business.
Last month, Godfrey Phillips had said it is going ahead with plans to exit from the retail business operated under the 24Seven brand following the setting aside of an interim injunction on the move by a district court in Delhi.
With inputs from PTI
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