NEW DELHI, January 22: The Company Law Board has directed the financial institutions to appoint a nominee on the board of Shaw Wallace. It has, however, refrained from considering the Union government petition on the ouster of P K Pandit as contempt of order.It has also directed the Shaw Wallace management to ensure that the nominee appointed be invited to all board meetings of the company. The CLB further reiterated its earlier order that the SWC management cannot vote out the financial institutions' nominee.
The principal bench of the CLB, while passing the order, has left the choice of the nominee to the institutions. The institutions can renominate the LIC nominee P K Pandit, if they so desire.
CLB, it is learnt, did not consider the government petition filed early this month as contempt of order as ``it did not want to enter into the legalities of the issue''. It was felt if the government petition was considered, the FIs could also be charged with contempt of order, as the institutions had
earlier voted against the P L Narasimhan, a management nominee.
Meanwhile, CLB has declined to issue an interim order paving way for appointment of four government nominees to the SWC board. This appeal will be considered next month.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
