Chairman can't accept MD's resignation: GCMMF directors

At least nine of the 13 directors of the Rs 8,000-crore Gujarat Cooperatives Milk Marketing Federation (GCMMF), which markets Amul products, have questioned powers of the Federation Chairman Parthi Bhatol to accept resignation of Managing Director B M Vyas.

The directors on board of GCMMF from the affiliated dairies of the Federation, during a meeting held here yesterday, said the power to accept resignation of the managing director only vests with the board of directors and not with the chairman.

The meeting was presided over by Ramsinh Parmar, chairman of Kheda District Cooperative Milk Dairy, which also owns the brand Amul.

“All the directors have decided to submit a memorandum to Bhatol demanding convening of meeting of the board of directors for discussing Vyas’s resignation,” one of the directors said on condition of anonymity. According to one of these directors, only three directors from Banaskantha, Ahmedabad and Panchmahals milk dairies cooperative union were absent during the meeting held on Wednesday.

Majority of directors on federation board have opposed acceptance of resignation of Vyas by the chairman, he said.

“Bhatol knows about it and that is why he is avoiding to convene board of directors meeting. We will not allow him to to succeed in his “sinister design” and compel him to convene the meeting as per the cooperative act,” the director said.

Vyas had refused to step down from his post until the board accepted his resignation, which was tendered several days ago. The move resulted into a showdown of sorts between GCMMF Chairman Bhatol and Vyas when the former asked the latter to step down. Vyas had handed over his resignation to Bhatol. When Bhatol had called Vyas to his office last week, Vyas refused to accept the chairman’s orders saying only the board could take a call on his resignation.