Calchem Board To Take Up Henkel Issue Today

Calcutta Chemicals, the subsidiary of liquor major Shaw Wallace & Co, is set to have a crucial board meeting today.

The agenda includes appointment of additional directors and deliberations on the challenge posed by minority shareholder, Krishna Das Paul, in the sale of the distribution rights of the company to Henkel Spic (India).

If the proposed additional directors turn out to be nominees of Henkel Spic, then the stage is set for further heartburn for the minority shareholders who are opposed to the sale of majority stake in the company to Henkel Spic.

Paul had already challenged the sale of the Shaw Wallace Company stake at the Company Law Board. The final verdict is expected in the first week of November.

 

The last hearing was held here on September 25.

According to sources, it is felt that appointment of directors from Henkel's side will not be taken up at this board meeting as the matter is still pending at the Company Law Board.

At present, the company has 10 directors on its board which include chairperson, Ashima Chatterjee, minority shareholder K D Paul, his nominee, N N Choudhry, S Ray, Madan Mohan Ghosh, Biswajit Sen, P J Rao, K P Roy, K C Gupta and K K Banerjee.

It is expected that two more additional directors will be inducted on to the board. The board already consists of 10 directors and according to the Companies Act, it can have a maximum of 12 directors.

Other items on the agenda of the board meeting include statutory compliances such as declaration of unaudited financial results, declaration of interim dividend and fixing the date of the company's 77th annual general meeting.

According to sources, the company is expecting a fall in profit before tax. Last year, it clocked a profit before tax of Rs 2.30 crore.

Calcutta Chemicals also expects total turnover to exceed Rs 21 crore against Rs 19.88 crore posted last year.

Paul has challenged the sale of Shaw Wallace's majority stake to Henkel Spic at a sale consideration of Rs 51.05 crore.

He had also written to the company's board of directors in a letter dated August 20 this year; the matter will be taken up for discussion at the board meeting today.

Paul is especially against the sale of distribution rights of Calcutta Chemical to Henkel Spic at a cost of Rs 17.73 crore.