Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Concerns related to alleged corporate governance and disclosure violations have been raised against Godfrey Phillips India (GPI) by Jupiter Asset Management, which owns more than 9 per cent stake in the company.
GPI, one of the largest cigarette manufacturing companies in the country, is now embroiled in a promoter family feud. Jupiter Asset Management, the largest shareholder in the company after the promoters, has written to the board seeking replies on corporate governance issues raised by a proxy advisory report.
An email query and phone messages to GPI’s spokesperson remained unanswered.
In a letter written by Jupiter, seen by BusinessLine, it has stressed on GPI’s obligations and failure to disclose matters regarding a family trust deed that made specific reference to succession plan for the Modi Family Trust, which the shareholders, including themselves, should know about.
Jupiter in its letter to GPI dated January 7 said, “We understand that under SEBI regulations, listed companies have an obligation to provide information to shareholders on capital structures and arrangements that enable certain shareholders to obtain a degree of control disproportionate to their equity ownership. Should such an arrangement exist between the company and its promoters (or between its promoters) that the company’s directors or officers are aware of, we understand that the board of GPI and its promoters would be required to make such a disclosure.
“It should cover the existence of any trust deed and its significant provisions, which may enable certain shareholders/ promoters, for instance, the Modi Family Trust to exercise control disproportionately to their equity ownership. Any shareholder agreement between the promoters and or with the company, which may affect control, eg, voting agreement, and whether there are any clauses in the trust deed, which when enacted and disclosed could have material impact on the share price and if so any such clause has been triggered.”
Jupiter also asked GPI to disclose to shareholders if no such arrangements existed.
BusinessLine reported on January 28 that according to Lalit Modi, a trustee of Modi Family Trust, there exists a trust deed with regard to GPI, which has several succession planning related clauses that have already been triggered.
A governance report from proxy advisory firm IiAS dated November 30, 2019, points out corporate governance related issued in GPI with regard to disclosure of related-party transactions (RPTs), succession planning, board evaluation, board committee composition, board composition, etc.
The IiAs report, seen by the BusinessLine, says that “GPI has a high value of RPTs amounting to 18 per cent of consolidated revenues in financial year 2019; the accuracy and completeness of RPTs have been pointed out as a key audit matter by the statutory auditors.
“Given the significant quantum of these transactions, GPI must provide additional disclosures regarding its RPTs including the need, expected frequency and pricing terms for such RPTs. The company must also provide a rationale for engaging promoter group companies instead of an independent third-party vendor to provide the same goods/services.”
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
With the public looking beyond mainstream media for reports from the ground, independent digital platforms are ...
Creator of the world’s biggest art canvas hopes to help children in poorer countries
A book on Badri Narayan is a tribute — albeit a belated one — to an artist who did not enjoy the recognition ...
The country hasn’t had a quiet moment since the military seized power on February 1
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor