11 months ago
India Gate Basmati Chair Disputes Director's Exit, Governance Claims
Imagine a company that makes delicious rice called India Gate.
One of the company's directors, like a board member, quit and said the company wasn't following the rules properly.
The company's boss says the director is being hostile and is wrong.
The director says he has evidence to support his claims.
The company says they'll review the director's concerns.
People who own the company's stock are worried and the stock price has gone down.
Now, the company is looking for a new director and is having an independent party look at the situation.
An independent director of KRBL Ltd resigned, citing governance concerns.
The company's chairman described the resignation as 'hostile' and denied the allegations.
The former director stated he has evidence to support his concerns.
KRBL is looking for a replacement for the director.
The company's stock price has fallen since the resignation was made public.
- Who
- KRBL Ltd and former director Anil Kumar Chaudhary
- What
- Disagreement over corporate governance following Chaudhary's resignation.
- Where
- India
- When
- Chaudhary resigned September 8; resignation disclosed September 13; analyst call September 16.
- Why
- Chaudhary cited governance concerns; KRBL disputes the claims.
Director's Perspective
Company's Perspective
Governance Lapses
Director's Perspective
Chaudhary raised concerns over CSR funds usage, write-offs, pay distribution, and object clause changes.
Company's Perspective
KRBL management refuted the claims, citing proper procedures and processes.
Director's Intent
Director's Perspective
Chaudhary stated he is not being hostile and wants to present evidence.
Company's Perspective
KRBL chairman claimed the director was hostile and raised no issues before.
Key facts
- Company
- KRBL Ltd (India Gate Basmati Rice)
- Former Director
- Anil Kumar Chaudhary
- Current Chairman
- Anil Kumar Mittal
- Resignation Date
- September 8
- Public Disclosure
- September 13
- Stock Decline
- 12.3%
Quotes
Anil Kumar Chaudhary
Former independent director of KRBL
“If, at all, any issues were raised by him, they were articulated and settled then and there. But if a person has decided or if he was cooking up some stories within himself, that cannot be answered”
livemint.com
“We could never imagine that he would become so hostile without any reason and would write so adversely about the company where he had been a director for one year”
livemint.com
Ashish Jain
KRBL’s chief financial officer
“due process in CSR wherein an annual operating plan is presented and approved”
livemint.com
