Clb Sets Limit On Borrowings, Investments By Shaw Wallace

The principle bench comprising CLB vice chairman S Balasubramaniam and A R Ramanathan also directed the management not to effect any changes in the composition of the board.

This nullifies the appointment of T S Venkatasen as executive director in place of A S Malik.

The decision to induct Venkatesan was taken by the SWC board which met in Bombay on Tuesday.

The board also directed the financial institutions to identify their representatives.

This situation has arisen since it was revealed during the proceedings that P K Pandit, who formerly represented the institutions was now an ex-employee of the LIC.

 

However, he had continued on the SWC board as an elected director.

Following this order, the institutions now have the option of either appointing a new nominee or identifying Pandit as their representatives.

This institutional nominee will henceforth be required to attend all board meetings of the Company in order to ensure that all investment decisions over the ceiling fixed by the CLB are wetted by him.

The CLB had initially been in favour of setting the independent decision making level for financial decisions at Rs 10 lakh and subsequently Rs 20 lakh but had finally settled for Rs 50 lakh.

The company management had sought an investment limit of Rs 1 crore.