Finolex Cable appoints Ratnakar Barve as chairman, Real Estate News, ET RealEstate
NEW DELHI: Finolex Cable has appointed Ratnakar Barve as its Chairman after Nikhil Naik stepped down from the post, according to a regulatory filing by the Chhabaria family-promoted company. The development comes almost a week after the National Company Law Appellate Tribunal (NCLAT) gave a go-ahead to the outcome of the AGM of FCL, wherein shareholders voted against the reappointment of its former Executive Chairman Deepak Chhabria on the board.
“This is to inform you that at the Board Meeting held on September 4, 2024, Nikhil Naik stepped down as Chairman of the Board, and the Board appointed Ratnakar Barve as Chairman in his place,” Finolex Cable Ltd (FCL) said.
Before this, Ratnakar Barve, who joined Finolex in 2009, was serving as Executive Director – Operations of the cable and appliances maker.
Deepak Chhabria was removed from the post of Chairman on October 23, after the resolution for his reappointment as a Whole Time Director designated as Executive Chairman for five years could not get the required support from shareholders in the AGM held on September 29, 2023.
Moreover with subsequent decisions from the Supreme Court and the NCLAT also, Deepak Chhabria “ceased” to be Director designated as “Executive Chairman” of the company, with effect from October 16, 2023, FCL had informed bourses on October 19, 2023.
Last week, the NCLAT also declined to interfere in the FCL AGM of September 29, 2023 and said the consolidated scrutiniser’s report reflects that 72.34 per cent of votes were against resolution Number 4, which was for the reappointment of Deepak Chhabria.
“The decision of the Annual General Meeting (AGM) held on 29.09.2023 on Resolution No. 4, which took place during the pendency of this Appeal is not interfered with,” the bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra had said.
Besides, the NCLAT also declined to invalidate the extraordinary general meeting (EGM) of Orbit Electricals in 2019, a holding company of Finolex Cables, in which the Articles of Association (AoA) were amended.
The NCLAT has upheld the earlier order passed by the National Company Law Tribunal (NCLT), which approved EGM, in which the rights of Deepak Chhabria were curtailed by amending AoA on May 3, 2019.
A long-drawn legal battle was fought between the Chhabaria cousins Deepak and Prakash in 2016 over the share of transfers and corporate governance.
For the financial year ending March 2024, revenue of Finolex Cable Ltd was Rs 5,014.39 crore.
