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MAM Ramaswamy removed from Chettinad board [India Business] [Times of India](Times of India Via Acquire Media NewsEdge) CHENNAI: The succession battle within the Chettinad group of companies has culminated in the removal of chairman MAM Ramaswamy from the board of its flagship enterprise, a position he held for more than three decades. A resolution to reappoint 83-year-old Ramaswamy was defeated at the 51stshareholders meeting of the Chettinad Cement Corporation on Wednesday. But in an unexpected reconciliation, the ageing patriarch was later named chairman emeritus by foster son and managing director MAMR Muthiah who has taken over the reins. An official statement from the group said, "In acknowledgement of his contribution at the helm of the Company's operations till 1999, the Managing Director announced that Dr. MAM would be appointed as Chairman Emeritus for life." Muthiah, who has powered the group's expansion over the last decade in cement, healthcare and logistics, has instilled a managerial culture that is in sharp contrast to the conservative approach favoured by his father. Signalling an end to the power struggle, Ramaswamy has now withdrawn a case he had filed saying his life was under threat and that he was under surveillance by people close to him. On Tuesday, he was booked for allegedly attempting to bribe the registrar of companies in Tamil Nadu to influence the outcome of the company's AGM. Cash was seized from the official's car and he was taken into custody while Ramaswamy was questioned. He was later admitted to a hospital. Ramaswamy, once rated the 88th richest Indian by Forbes, was at the helm of the Chettinad group for several decades. In the end, the baton passed from father to son without murmurs of protest or dissent. The shareholders of Chettinad Cements met at Rani Seethai Hall in the city on Wednesday to put their seal on succession in the group. Business started at around 10.15 am and went on in clinical fashion with voting for resolutions. A key resolution, item No 2 on the agenda, the resolution seeking re-appointment of chairman MAM Ramaswamy was defeated and an amendment to the ordinary resolution stating that Ramaswamy should not be reappointed as director was carried by members. The 84-year-old Ramaswamy was not present at the meeting as he was hospitalized late Tuesday evening. L Muthukrishnan, director on the board of Chettinad Cements, chaired the AGM, which was held against a backdrop of mutual suspicion and a police probe. However, speaking to shareholders, MAMR Muthiah, MD of the company, struck a note of compromise and said he would recommend to the board that his father be elevated to the post of chairman emeritus, a non-executive role for life. Acknowledging Ramaswamy's stewardship, Muthiah said cement making capacity increased from one million tonnes a year to 12 million tonnes under the guidance of his father. There were indications that Wednesday's AGM could see the veteran being eased out of executive positions. The proceedings played out just as expected, but without any signs of acrimony. Barring the resolution seeking Ramaswamy's reappointment, all the others including appointment of three independent directors, appointment of new auditors, and increasing borrowing powers of the company, were passed by shareholders. Muthiah also told shareholders that the group would push itself into newer geographies in north India. At present all of the group's cement assets of 12 million tonnes a year are only in South India. (c) 2014 Bennett, Coleman & Company Limited |