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Noted industrialist and former MP M A M Ramaswamy has been chosen “not” to be re-appointed as Director of Chettinad Cement Corporation, the flagship company of Chettinad Group of Companies, one of the popular companies in South India.
At the 51st Annual General Meeting of Chettinad Cement Corporation here, a resolution seeking his non—appointment as Director of the company was moved, according to shareholders.
Ramaswami has been Chairman of Chettinad Cement Corporation while his adopted son M A M R Muthiah serves as its Managing Director.
“Resolved that Dr M A M Ramaswamy, Director, who retires by rotation pursuant to Section 152 of Companies Act 2013, be and is hereby not reappointed as Director of the Company”, the resolution moved in the AGM said.
Ramaswami’s non-election as Director of Chettinad Cement Corporation comes a day after CBI arrested the Registrar of Companies here on bribery charges, for allegedly demanding and accepting Rs 10 lakh as bribe from Ramaswami.
The Registrar M Manu Neethi Cholan was nabbed red handed by CBI yesterday for allegedly demanding and accepting Rs 10 lakh as illegal gratification from Ramaswami to declare “null and void” the resolutions adopted at today’s meeting, where the rival group within the Chettinad Group management was planning to take control over the companies.
However, CBI which registered a case of bribery against Ramaswami, did not arrest him considering his age.
With shareholders rejecting Ramaswamy’s reappointment as Director, the post of Chairman, Chettinad Cement Corporation would become vacant, a shareholder who did not want to be named, said.
Apart from cement business, the Chettinad group is engaged in activities in granite, engineering, silica, garnet, Information Technology, education, healthcare, plantations, shipping, transportation.
Ramaswamy was also Pro-Chancellor of Annamalai University at Chidambaram in Tamil Nadu, but it was taken over by the State government due to alleged ‘financial irregularities’
Ramaswamy holds 24 per cent of the flagship company Chettinad Cement Corporation (91,83,834 shares). Chettinad Cement Corporation Managing Director and adopted son of Ramaswamy, M A M R Muthiah holds 15 per cent of the shares (55,86,709) while his wife, Geetha Muthiah has 18 per cent (69,53,690 shares).
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