Power Struggle At Sathe Biscuits
Pune-based biscuit and chocolate producing firm, Sathe Biscuits & Chocolate Co Ltd, is facing a major board room tussle with brothers fighting amongst themselves for the control of the factory. An extraordinary requisition meeting of the 77-year old ailing company has been called on May 23.
It is for the removal of V G Sathe from the post of chairman and managing director.
The resolution at the meeting will also seek the complete dropping of V G Sathe from the board of directors of the company.
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It will also consider a resolution to withdraw all powers vested in V G Sathe with immediate effect. The main charge against V G Sathe is that he allotted equity shares worth Rs 25 lakh to a group of city builders led by P C Parmar under a memorandum of understanding (MoU) signed between the two parties.
M G Sathe, director of the company, who has convened the meeting in his explanatory statement under Section 173(2) of the Companies Act 1956, issued to the shareholders said the Memeorandum of Understanding (MoU) allegedly signed by V G Sathe & the Parmars is a clear cut conspiracy to play fraud, cheating, mischief, misrepresentation, breach of trust of the company, forgery by keeping the board of directors of the company as well as the company in the dark, entered into, with some ulterior motive and does not bind the company.
The MoU signed between the builder and V G Sathe has not been filed with the registrar of companies, Mumbai, Maharashtra, nor notice about the beneficent and ostensible ownership given to the company or filed with the company as required by the companies Act, M G Sathe said.
M G Sathe who was previously the managing director of the company has offered himself to take up the position of chairman and managing director of the company-which forms item No 2 of the meeting.
The company which has been referred to BIFR, M G Sathe said needs cash injection of Rs 2.5 crore for its revival.
The company has accumulated losses of over Rs 3.5 crore.
Therefore has been referred to the Board for Industrial and Financial reconstruction (BIFR).
However, the company's factory is sitting on a 27 acres land, estimated to have a market value of Rs 30 crore.
Therefore, several builders are said to be eyeing for the takeover. Any fresh allocation of equity shares could tilt the balance in favour of the builders. Shareholders and employees fear builders taking over the company would be detrimental to their interest.