Godfrey Philips' share price sank five percent in the early session on September 9 after Bina Modi was re-appointed as Managing Director of the tobacco player for five more years.
Bina Modi secured 3.79 crore votes, which amounts to 86.6 percent of the total votes, while 58.55 lakh votes, or 13.35 percent, were cast against the resolution. Charu Modi, her daughter, has been named Executive Director for the same term.
At 9.40 am, Godfrey Philips shares were quoting Rs 6,882.45 on the NSE, sinking 4.5 percent from the previous close.
Samir Modi was removed from the board and is no longer serving as a director. Bina Modi was embattled in a fight for control over the KK Modi's Family Trust with her sons, Lalit and Samir Modi.
"We would like to inform that Samir Kumar Modi has retired by rotation w.e.f completion of the 87th AGM of the company held today. Consequently, Samir Kumar Modi has also ceased to be an executive director of the company with effect from said date," said Godfrey Philips in an exchange filing.
Also Read | Godfrey Phillips says board to consider 1:2 bonus issue; shares zoom to all-time high
Ahead of the AGM, 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 came as a relief for Bina Modi, who holds a pivotal role in the company's leadership and controls 48 percent of the shareholding through the trust.
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 also declared a dividend of Rs 56 per equity share of Rs 2 for the year ended March 31, 2024.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
