S Kumar's investors withdraw resolutions to oust Kasliwal

The very group that earlier accused Kasliwal of mismanagement now wants him back; existing management inducts him, four others on the board

The very group of investors of S Kumar's Nationwide (SKNL) that had called an extra-ordinary general meeting for the ouster of the company's chairman Nitin Kasliwal and other directors, withdrew the resolutions at the EGM held on Monday (April 27), said proxy firm IiAS today.

The existing management then inducted the four nominees to the board, whose candidature was proposed by the very group that alleged mismanagement, IiAS said in a note.

"Genuine investor voices were hushed -- and, if this was not enough drama for one afternoon, there was an attempt to push the Kasliwal family feud onto the agenda," it said.

A group of shareholders led by Yogesh Himatlal Patel had called for the EGM on Monday, with the resolutions seeking outster of Kasliwal and the rest of the board, alleging mismanagement in the company.

The group which called for the EGM said the clarifications provided by the management were sufficient to support the withdrawal but did not share the clarifications with the shareholders, IiAS said.

The proxy firm said the questions regarding when the annual general meeting (AGM) is likely to be held, when the financial statement are likely to be published, what is the management strategy to pull the company out of its current status remain unanswered.

"Is the new board's agenda really to fix the company or do they collectively have some other agenda?," it asked.

It said that it was time bankers take control and regulators step in. "Retail investors need to be shielded.," it said.