Clb Order Puts Swc Board In Straitjacket

However, the CLB asked the company to give an undertaking that Shaw Wallace board would not take any investment and financial decisions involving more than Rs 20 lakh without the consent of the nominee directors of the financial institutions on the board.

The company counsel said he needed instructions on the matter from his client and CLB granted him time till today.

The bench consisting of CLB chairman S Balasubramaniam and member, A R Ramanathan said such an undertaking was the best workable solution so that the company could go ahead.

The petition for interim relief filed on Tuesday by All India Shaw Wallace Employees Federation and others had sought appointment of an administrator or special officer to supersede the board of directors and prayed for framing a scheme for the management and control of the affairs of the company and its operations.

 

The counsel for the Shaw Wallace employees federation argued that the Department of Company Affairs (DCA) inspection of company's records revealed a "severe financial mismanagement"..

Counsel said a statutory authority has carried out investigation into the company's affairs and the bench should carry out a prima facie order. However, the bench clarified that what DCA has done was not an investigation but an inspection. Counsel for the company said the DCA report, which was made available to his client only on Tuesday.

DCA questions Shaw Wallace accounting practices - Page 11