Burroughs Inducts 2 Glaxo Directors

Burroughs Wellcome is revamping its board by inducting two whole-time directors from Glaxo as a prelude to its merger with Glaxo (India) Ltd. This is aimed at bringing closer integration between the two companies before the actual merger is effected.

The appointments of the two directors will be approved at the Burroughs Wellcome annual general meeting (AGM) on June 20 in Mumbai.

Four Burroughs Wellcome directors have resigned during the year and this induction will reduce the board strength from eight to six.

The four directors are K Gay, S K Gupta, C N Howarth and M P Wadhawan. The two entrants from Glaxo are P V Nayak and A T H Wong.

Nayak is Glaxos whole-time director and executive director of corporate, personnel, administration and legal departments. Wong, who is the regional finance director Asia Pacific for Glaxo Wellcome, had been appointed on the Glaxo board in place of M S Leyland. Wong is seeking re-appointment on the Glaxo board.

V Thyagarajan, the managing director at Glaxo before H R Khusrokhan took over in May 96, will continue to be on the board if his re-appointment is okayed by Burroughs Wellcome shareholders.

Glaxo India plans to increase inter-corporate investments beyond 30 per cent and has fixed a limit of Rs 300 crore for investing in their shares. Following Glaxo, Burroughs Wellcome has also increased its inter-corporate investments beyond 30 per cent and set a limit of Rs 100 crore.

Besides, both Glaxo and Burroughs will declare a 25 per cent final dividend at the AGMs to be held on June 20. A 15 per cent interim dividend had been earlier declared.

The two companies, which are going to be merged soon, will also appoint Lovelock & Lewes as the sole auditors. This is because the other joint auditor frim, A F Ferguson & Co, is unwilling to seek re-appointment.