SEBI To Decide the Fate Of Vijay Mallya On Chairing UBL Board

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    The Securities Exchange Board of India (SEBI), will soon pass a final order regarding Vijay Mallya on if he can hold the board position in the listed companies. With this the long wait for the full-time Chairman for United Breweries Limited (UBL) will end soon.

    SEBI To Decide the Fate Of Vijay Mallya On Chairing UBL Board
     

    Currently, Vijay Mallya has left the country and is believed to be hiding overseas in Britain, facing charges of financial fraud for the past few years - after he defaulted to repay the borrowed loans from Indian Banks. The Indian government is trying all the possible ways to extradite him. He has been reluctant to nominate a successor or even consider stepping down from the Board of United Breweries which is a joint venture between Vijay Mallya and Heineken International.

    "The hearing has been concluded," a person familiar with the development said. "SEBI is trying to come out with an order before the May deadline." A lawyer familiar with the case said it's highly unlikely SEBI would change its earlier stance of barring Mallya from staying on the Board.

    If SEBI does not change their stand then Mallya will be forced to quit United Breweries Board and allow the company to choose a full-time Chairman.

    As of now, UBL is rotating its Board members as acting Chairman, regularly.

    "The company is functioning well and operations are in good shape, but it is not good corporate governance to have an acting chairman for so long," a company Board member said seeking anonymity.

    A Heineken spokesperson said, "Vijay Mallya is not a member of UBL's Board of directors, in compliance with the SEBI order dated 25 January 2017."

    Read more about: sebi chairman
    Story first published: Wednesday, April 25, 2018, 12:52 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more