NEW DELHI, June 23: Ballarpur Industries chairman L M Thapar has been removed from the board of directors of the Thailand-based Phoenix Pulp and Paper Company, of which he is one of the original promoters.

Phoenix Pulp and Paper Company (PPPC) is a joint venture between European Overseas Development Corporation (EODC) and Ballarpur Industries Limited (BILT) with the latter holding around 13 per cent in PPPC .

Another Phoenix Pulp share-holder, Kirit Shah of Globex Corporation, has also been dropped from the board. Globex Corporation holds around 9 per cent in Phoenix Pulp. These decisions were believed to have been taken at the company's annual general meeting held in Bangkok recently.

Out of a total of 1,084 shareholders registered at the meeting, 964 voted for the removal of L M Thapar and Kirit Shah from the company's board of directors, according to information available here.

When contacted Ballarpur Industries, a company spokesman confirmed the development but added that "some shareholders of the company are contesting the annual general meeting results in a Thai court." However, he declined to elaborate on this.

According to the minutes of the AGM, a copy of which is available with The Financial Express, a shareholder proposed that Kirit Shah and L M Thapar be removed from the board of directors. The proposal was seconded. The chairman of the meeting called for a vote on the proposal to remove Shah and Thapar from the board.

It is understood that this was the result of an ongoing corporate battle between another shareholder and PPPC's executive vice-chairman George Davison who represents EODC, which holds around 30 per cent in PPPC, and Globex Corporation. EODC earlier in 1994 too warded off attempts by Globex to take over Phoenix. Davison has also filed a petition against Thapar and three others in a Thai civil court.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.