Godfrey Phillips | Source: Wikipedia
Cigarette maker Godfrey Phillips India Ltd Chairman Bina Modi on Friday defended the company’s decision to close its retail business ’24Seven’, the brainchild of her estranged son Samir Modi, saying it was done with a view to focusing on its core business.
At the company’s annual general meeting held on Friday, the special matter of not filling the vacancy “for the time being” caused by the rotational retirement of Samir Modi along with the appointment of his sister Charu Modi as the CEO, among others, was taken up for approval by the shareholders.
Addressing shareholders, Bina Modi said, “This focus on our core business is in line with the ‘Core Competence Theory’ propagated by the late global management guru Professor CK Prahalad. This strategy has also led us to the closure of our retail business 24Seven. Sometimes we have to address issues in the long-term interest of the company and shareholders.”
In July this year, Godfrey Phillips India (GPI) announced that it would go ahead with its plans to exit the retail business operated under the ’24Seven’ brand after a district court in the capital set aside an interim injunction on the move.
Earlier, on June 27, 2024, a city court in this city had issued an injunction against the demerger of the retail business following an application filed by its CEO Samir Modi. The injunction was later set aside by the district judge of the South East District of Saket Court in New Delhi in favour of the company.
The company’s board of directors approved on April 12, 2024 the exit of the retail business division operated under 24Seven, subject to compliance with the necessary formalities.
Bina Modi has been involved in a boardroom feud with her son Samir Modi, who even accused her of orchestrating an attack on him during the company’s board meeting.
He had lodged a complaint with the Delhi Police alleging that Bina Modi’s PSO had prevented him from participating in the GPI board meeting scheduled for May 30 and that he had been “seriously injured” after being assaulted.
The AGM on Friday also took up the special resolution for re-election of Bina Modi as managing director and payment of remuneration on her behalf. As her remuneration exceeds the limits of Rs 50 crore or 2.5 per cent of the company’s net profits, GPI requires a special resolution, which needs to be passed by an absolute majority of 75 per cent of the total votes cast.
Last month, US proxy advisory firm Glass Lewis had advised shareholders to vote “against” the special resolution seeking her re-election as CEO, noting that “there were no defined performance conditions for the payment of the fee”.
Godfrey Phillips India is the flagship company of Modi Enterprises. It manufactures popular cigarette brands such as Four Square, Red and White, Cavanders, Tipper and North Pole.
It also manufactures and distributes the Marlboro brand under a licensing agreement with Philip Morris.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: September 6, 2024 | 21:17 IS
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