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Informist, Thursday, Sep 5, 2024

 

NEW DELHI – The Delhi High Court today allowed Bina Modi to vote in the annual general meeting of Godfrey Phillips India Ltd, scheduled for Friday, rejecting a petition by her grandson Ruchir Modi. However, the court asked Bina Modi to file an affidavit on a half-yearly basis on the amount of remuneration and other benefits she received from the company as the managing director. 

 

The annual general meeting of Godfrey Phillips is vital as shareholders will decide on Bina Modi's replacement for managing director. Ruchir Modi had alleged that Bina Modi was trying to vote for herself on behalf of the K.K. Modi Family Trust to become the managing director for the next five years. Ruchir Modi said this was not only contrary to the trust deed but also a clear conflict of interest, which is illegal and not permissible. 

 

The high court said if, at any stage of the suit, it issues a direction that Bina Modi's appointment as managing director is not right, she shall tender her resignation immediately and would not claim any equity. This shall also be informed in the annual general meeting, said the court. 

 

The high court was hearing a petition by Ruchir Modi, son of former Indian Premier League chairman Lalit Modi, seeking Bina Modi's removal from the office of managing trustee of the K.K. Modi Family Trust and appointment of an administrator. Ruchir Modi also sought direction from the court to the administrator to take steps to sell the assets of the trust and distribute the net proceeds among the four family branches.

 

K.K. Modi, along with his wife Bina Modi, son Lalit Modi and others, executed a restated trust deed in 2014. The trust deed consolidated the family's immovable and moveable assets into a trust, to ensure equal rights and benefits among all family branches. As part of its moveable assets, the trust either directly or indirectly holds shares in some companies.

 

Upon the demise of K.K. Modi, Bina Modi usurped the role of managing trustee, despite the restated trust deed requiring the sale of the entire trust fund as the parties had failed to reach a unanimous decision to continue the trust. However, Bina Modi, along with her daughter Charu, have been acting in a manner to exclude Lalit Modi's son Ruchir Modi and their family branch from the benefits and entitlements of the trust and are committing a breach of their fiduciary duty as trustees, Ruchir Modi had said.  

 

Today, the shares of Godfrey Phillips India ended 0.7% higher at 6,412.05 rupees on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Aditya Sakorkar

 

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