Shareholders approved Samir Modi’s ouster from Godfrey Philips Board in the company's annual general meeting held on September 5. The vacancy caused by retirement by rotation of Samir Kumaar Modi, be not filled up for the time being, the company said in a disclosure to the exchanges.
The shareholders also reappointed Bina Modi as Managing Director and appointed her daughter Charu Modi as an Executive Director, according to the statement.
On the eve of the crucial meeting, group matriarch and Chairperson and Managing Director (CMD) Bina Modi received a shot in the arm with Delhi High Court allowing her to cast a vote on the behalf of the KK Modi family trust at the AGM. The High Court also dismissed pleas by Samir and Ruchir Modi to stop Bina from voting at the AGM.
The trust has nearly 47.5 percent stake in the company, with partner, global giant Philip Morris International holding just over 25 percent stake. However, the right to appoint the MD vests solely with the Modi promoter block.
Samir Modi, former Executive Director of the KK Modi Group’s flagship company was proposed to be ousted by the opposing camp led by his mother Bina Modi. A resolution seeking his removal for his overall conduct during board meetings and outside was being voted on by shareholders.
Bonus shares and dividend
Shares of Godfrey Phillips India Ltd rose sharply in Friday's trade to scale their all-time high level. Despite a deep correction in domestic benchmarks, the stock jumped 14.50 per cent to hit a record high of Rs 7,320.
Today's uptick in the share price came after the company's board said it will meet on September 20 to consider and approve a bonus issue of shares in the ratio of 2:1. If approved, investors will get 2 additional shares for every share they 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.
Additionally, the AGM also approved the declaration of dividend at the rate of Rs 56 per share on equity shares for the year ended March 31, 2024.