MP Birla group firms shareholders vote against appointment of directors proposed by Punjab Produce & Trading

Kolkata-based MP Birla Group on Saturday said shareholders of its three listed cable companies -- Vindhya Telelinks Ltd, Universal Cables Ltd and Birla Cable Ltd -- have voted against appointments of directors proposed by investment firm Punjab Produce and Trading Co. Ltd.

In a statement, the group said Punjab Produce and Trading Co. Ltd (PPTCL) had filed nominations seeking appointments of two directors on the boards of all the three cable companies.

In case of Vindhya Telelinks and Universal Cables, PPTCL had proposed appointments of DR Agarwal and SK Chakrabarti as directors, with the latter's nomination being proposed to replace Justice (retired) Dilip Ganesh Karnik as director.

The proposal for appointment of Agarwal as director in Vindhya Telelinks was defeated with 72.17 per cent of votes against and 27.83 per cent in favour, the group said in a statement.

Chakrabarti's appointment was also voted down by the shareholders with 72.17 per cent votes against the proposal and 27.83 per cent in favour, while the reappointment of Karnik as director was ''carried by majority'' with 77.54 per cent votes in favour and 22.46 per cent against, the group said.

Similarly, in Universal Cables, Karnik's appointment as director was ''carried by majority'' with 63.17 per cent votes in favour and 36.83 per cent against, while the proposal to appoint Chakrabarti as director to replace him was defeated with 57.95 per cent votes against and 42.05 per cent in favour, it added.

PPTCL's proposal to appoint Agarwal as director in Universal Cables was also rejected with 57.95 per cent votes agaisnt and 42.05 per cent in favour.

As far as Birla Cable was concerned, PPTCL had proposed appointments of DR Agarwal and Satish Pradhan as directors.

Pradhan was proposed to replace HV Lodha, who is the Chairman of the group.

Lodha's re-appointment as director was ''carried by majority'' with 83.11 per cent votes in favour and 16.89 per cent against.

On the other hand, the proposal for appointment of Pradhan as director replacing Lodha was defeated with 81.45 votes against and 18.55 per cent in favour.

Similarly, the appointment of Agarwal as director was also defeated with 81.45 per cent votes against and 18.55 per cent votes in favour, the group said.

The Birlas and the Lodhas have been locked in legal battles for 17 years over the control of the Rs 5,000 crore Birla Estate, ever since the death of Priyamvada Devi Birla, wife of MP Birla.

The bone of contention is the ''purported will'' of late Priyamvada Devi Birla executed in July 1982, which is alleged to have transferred the shares of the MP Birla group, collectively called as the Birla Estate, in favour of late Rajendra Singh Lodha, the father Harsh Vardhan.

Commenting on the development, the group said, ''All these resolutions, which were aimed at interfering with the management of the professionally-run companies, were defeated comprehensively.'' The boards of these companies had deliberated over these nominations and strongly recommended shareholders to vote against them in view of potential conflict of interest if these persons were elected, it added.