New Delhi: At Godfrey Phillips’ annual general meeting (AGM) held on September 5, shareholders ousted Samir Modi from the company’s board, and his mother Bina Modi was reappointed as Managing Director.
As per the company's disclosure to the exchanges, the vacancy caused by Samir's ouster will not be filled for the time-being. Notably, Bina Modi's daughter Charu was appointed as an Executive Director, the statement said.
What made the AGM crucial was the ongoing family dispute between the group matriarch and Chairperson and Managing Director (CMD) Bina Modi and her son Samir over the leadership role. In June, Samir Modi accused his mother of orchestrating an attack against him, escalating the family feud over the inheritance of his late father, KK Modi.
Bina received a major boost on the eve of the crucial meeting. The Delhi High Court allowed her to cast a vote on behalf of the KK Modi family trust at the AGM. The court also dismissed Samir and his son Ruchir's pleas to prevent Bina from voting.
The trust holds a significant 47.5 percent stake in the company, while its partner, global giant Philip Morris International, controls just over 25 percent. Despite this, the authority to appoint the Managing Director rests solely with the Modi family.
Samir Modi, the former Executive Director of the KK Modi Group’s flagship company, was proposed for removal by a faction led by his mother, Bina Modi. Shareholders were voting on a resolution seeking his ouster due to concerns about his conduct both during board meetings and in other contexts.
Shares of Godfrey Phillips India Ltd surged to an all-time high on Friday, defying a broader market downturn. The stock soared 14.50 percent, reaching a peak of Rs 7,320.
This significant increase followed the announcement that the company’s board will convene on September 20 to discuss and potentially approve a bonus issue of shares in a 2:1 ratio. If approved, shareholders will receive two additional shares for every share they currently hold.
"The Board of Directors is scheduled to be held on September 20 to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 2:1 i.e. 2 (Two) new fully paid-up Equity Shares of Rs 2 each for every 1 (One) existing fully paid-up Equity Share of Rs 2 each, to the Equity Shareholders of the Company by capitalisation of reserves," it stated in an exchange filing.
The AGM also approved a dividend of Rs 56 per share on equity shares for the fiscal year ending March 31, 2024.