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Ahead of the critical Annual General Meeting of Godfrey Phillips which is slated for September 6, Samir Modi, part of its promoters’ group, who is locked in a boardroom battle with his mother Bina Modi, said he hopes that the shareholders will vote for the right reasons.
Key proposals
Key proposals that will be put to vote at the AGM include reappointment of Bina Modi as Managing Director of the company. Another proposal will seek shareholders’ nod for the company’s Nomination and Remuneration Committee (NRC) unanimous decision against reappointment of Samir Modi as a Director.
“I am hoping the shareholders will vote rightly. I have been contributing to the company for the last 30 years.I have been a hardcore tobacco man. For me its really not about the personality but about adding value to the business. For me business comes first everything is secondary.. The company and brand come before any individual. My focus has been build to create value for shareholders. It is all about doing things for the right reasons and its all about governance,“ Samir Modi told businessline.
Three proxy advisory firms including Glass Lewis have recently issued recommendations to shareholders to vote against the reappointment of Bina Modi as the Managing Director. Glass Lewis has also questioned the decision of NRC to reject Samir Modi’s re-appointment.
The feud between the late KK Modi’s family over the distribution of his ₹11,000 crore inheritance has intensified in recent times. The parties involved have filed police complaints and are locked in a bitter legal battle.
In an earnings presentation of Q1FY25 released earlier this month, Godfrey Phillips stated that it has initiated necessary steps, in accordance with the decision of the Board of Directors on April 12, to exit from carrying out the business operations of its retail business division run under brand 24Seven. “Accordingly, the Company has recognized estimated closure costs of the retail business as exceptional items in the financial results for the current quarter,” it added.
24Seven stores
“24Seven stores should not have been shut down. I think the brand had started to pick-up. The retail business was started as part of the diversification strategy of the company. It is a long gestation business that requires volumes.I think shutting down the business of 24Seven was premature as we had started making the money at the front-end. Even if we had to disinvest, we should have sold the business,” Modi added.
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