Calcutta, Dec 20 : Shaw Wallace & Co Ltd will be seeking the approval of its shareholders for giving corporate guarantees of Rs 14.50 crore to four financial institutions that had sanctioned loans to its subsidiaries.Under Section 372A of the Companies Act of 1956, it has to seek the shareholders' permission at its annual general meeting on December 30, since the corporate guarantee already given by it exceeds the limit prescribed by the Act.
The loans had been given by Andhra Pradesh Industrial Development Corp, Andhra Pradesh State Finance Corp, Pradeshiya Industrial & Investment Corp of Uttar Pradesh and Janata Sahakari Bank.
The company will also be seeking the shareholders' clearance for the appointment of three directors - Mr Niranjan Thakur, Mr Satish Pillai and Mr Suresh Dadlani.
The latest annual report notes that the company has around Rs 113 crore deposited with the United Bank of India for repaying its creditors.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.