The Hindu Business Line : PTL not averse to Sumitomo's nominee as MD for Swaraj Mazda

Opposing the continuation of Mr Yash Mahajan and Mr S.K. Tuteja on the board of Swaraj Mazda, Punjab Tractors Ltd (PTL) said at the Company Law Board (CLB) hearing on the issue on Monday that it was not averse to the appointment of Sumitomo Corporation's nominee as the Managing Director of the company.

PTL, which had last week submitted a petition to the CLB seeking the removal of current Swaraj Mazda Managing Director Mr Mahajan, and Director Mr Tuteja, said the Swaraj Mazda board had rejected the appeal for their removal despite withdrawal of their nomination by PTL.

Counsel for PTL during the hearing said Swaraj Mazda's board had not given effect to the nomination of its three directors and did not pay heed to the proposal on the appointment of Chairman and Vice-Chairman. However, he added, PTL was not averse to the appointment of Sumitomo's nominee as the Managing Director.

While Sumitomo holds around 41 per cent stake in Swaraj Mazda, PTL has about 14 per cent. Swaraj Mazda was incorporated in 1984 as a joint venture between Sumitomo, Mazda and PTL.

PTL said that as per the joint venture agreement between the parties, the company was entitled to appoint four directors on Swaraj Mazda's board.

However, the counsels for Swaraj Mazda and Sumitomo rejected the arguments of PTL and said it had always acted in the interests of the company. They countered that the existing management of the company ``is needed'' for its growth.

Swaraj Mazda further agreed that it would not hold a board meeting in the next 15 days. The case will now come up for hearing on July 18.

More Stories on : Corporate Disputes | HCV/LCV/Tractors

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