Keshub to continue as M&M chairman

At the 64th annual general meeting (AGM) today of Mahindra & Mahindra, the automobile major, Chairman Keshub Mahindra got an overwhelming response from his company's shareholders, when most gave their approval for re-appointing him.

Mahindra, now 86, was today given an extension in his term as director and to continue as the company's chairman for three more years. He was one of the five directors seeking re-appointment.

A science graduate from Wharton, Mahindra is one of the seven convicted for the Bhopal gas disaster that killed over 15,000 people in December 1984. He was then the non-executive director and non-executive chairman of Union Carbide India (UCIL), the company responsible for the tragedy.

Mahindra, out on bail presently and having filed an appeal, did not talk about the conviction and the trial. He merely thanked all the shareholders who had given strong support to the resolution re-appointing him as a director.

Speculation belied
It was widely speculated that Mahindra would have to relinquish the chairman's position and quit from the board following his conviction in the case. A person is disqualified from holding the post of a director in a company until his conviction is stayed, according to the Companies Act.

Regarded as an icon when it comes to corporate governance and ethics, he is also serving on the boards of HDFC and Bombay Dyeing. He has also served as a non-executive director on some of the Tata Group companies earlier.

He had, however, resigned from the coveted Prime Minister’s Council on Trade and Industry earlier this month, due to reasons not made official. Its 21 members include figures such as Ratan Tata, Mukesh Ambani, Kumar Mangalam Birla, Sunil Mittal and Deepak Parekh.

According to legal experts, Mahindra can continue with his position in M&M while filing an appeal in a higher court against the conviction.

While the conviction was brought up by several shareholders, who took turns to speak to the directors at the AGM, which lasted for nearly two and a half hours, one shareholder decided to ask HDFC non-executive chairman Deepak Parekh, and Nadir Godrej, managing director of Godrej Industries, if it was fair to hold them responsible for any major accidents occurring at one of M&M's facilities.

In his appeal, Mahindra has argued that he was not involved in day-to-day management or operational activities of UCIL but only chaired the meetings of the board of directors. The court has fixed September 28 as the date for hearing the appeal filed by Mahindra.

While making his way into the iconic building of Birla Matoshri located at South Mumbai for the AGM, Mahindra, who has been chairman of the Rs 32,000-crore group for 47 years, wore a bland look. Despite his slow pace of movement, Mahindra led other directors, including nephew Anand Mahindra, who is vice chairman and managing director, into the building hall.

Both the Mahindras, however, gave the impatient media contingent, waiting outside the hall for a quick interview, the slip after the AGM got over.