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Abhaya Shankar, Managing Director of HIL Ltd, a CK Birla Group company based in Hyderabad, has resigned.
Shares of HIL are down by more than 8 per cent in the wake of the announcement, though the market itself was weak because of the mixed outcome in the by-elections held.
In a communication to the stock exchanges, HIL said that Abhaya Shankar today submitted his resignation as Managing Director and Director of HIL during a board meeting. The board has accepted it and said that Abhaya Shankar would be relieved from the post on September 22. He has held the job since February 2008.
HIL said that till a replacement is made, the management committee consisting of senior managers will run the day-to-day operations of the company. It was not clear as to what led to the decision of Shankar to quit from his post.
Interim dividend
In a notification to the stock exchanges on September 5, HIL had said that its board of directors will on September 16 consider declaration of interim dividend for the financial year 2014-15. The board of directors in fact declared an interim dividend @ Rs 10 per share.
HIL Ltd’s board of directors on July 18 had decided to seek approval from the shareholders by way of special resolution through postal ballot, subject to the approval of the Central Government, waiver of recovery of excess remuneration of Rs 116.90 lakh paid to Abhaya Shankar for the financial year 2013-14.
The company said in its communication that the payout had exceeded the limits prescribed in Part II of Schedule XIII read with Section 198, 309 and other applicable provisions of the Companies Act, 1956. This special resolution was declared as having been approved by the shareholders with requisite majority by the company on August 30.
HIL, known earlier as Hyderabad Industries Ltd, is a well-known player in the building material solutions segment.
HIL shares shed 8.31 per cent or Rs 56.95 to Rs 628 on the NSE. The stock, which touched a high of Rs 688.90, fell to a low of Rs 621, before pulling back mildly.
But the overall market weakness also may have added to the stock’s performance with the Sensex shedding more than 200 points and the Nifty down by about 70 points as the by-election results sent a mixed signal.
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