Britannia has violated list standards by not reporting the arrest of Ness Wadia to the stock exchange: InGovern
NEW DELHI: Proxy Consultancy Firm And Corporate Governance Company InGovern On Monday That Claimed Britannia Industries Breaking List Regulation By Not Reporting Arrest Of His Promoter And Director Ness Wadia , While Demanding His Resignation. InGovern Founder Shriram Subramanian Also Said Directors On The Board Of Britannia Industries Should Also Ask Themselves Whether The Continuation Of Wadia, Who Was Given A Two-year Suspended Sentence By A Court Japan For Drug Ownership, Was Good For Corporate Governance.
Citing Sebi's Listing Obligations And Disclosure Requirements (LODR), He Said A Company Has To Report Any Fraud, Default By Promoter Or Judgment Or Key Managerial Persons Or Promoters As It Is A Material Event.
" The Judgment Or Promoter Was A Material Event And That Was Disclosed To The Stock Exchanges. That Wasn't Done By Britannia," Subramanian Told.
This Is A Violation Of LODR By The Company, He Said, Adding Wadia Must Step Down In The Interest Of Larger Corporate Governance.
Britannia Industries' Assertion In A Regulatory Filing On May 2 That Neither Was The Company Aware Of Wadia's Judgment, Nor Did The Underlying Facts Deals With Detention And Judgments Connected With Offenses Involving Corporate And Financial Fraud" .
Subramanian Also Said," In The Interest Of Larger Corporate Governance. And Character, The Board Should Ask Themselves Whether Such A Director Is Good For The Company" .
Comments From Britannia Industries And Wadia Group Could Not Be Obtained As Query Remained Unanswered.
However, On May 2 Britannia Industries Submitted To BSE A Letter Written By Ness Wadia To Its Company Secretary On April 30 Regarding The Suspended Sentence He Was Given Saying It Was Clear Judgment.
" Hence, I Have Been Suitably Advised That It Will Not Impact Me In The Discharge Of My Responsibilities And I Will Be Able To Continue To Play The Role That I Have Done Hitherto, Both In The Company Activities," Wadia Said.
He Is Director Of Large Companies Of The Wadia Group, Including Bombay Paints And Bombay Burmah Trading Corporation Ltd .
According To The Media Report Of Last Week, Wadia, Who Was On Ski Holiday, Was Arrested In Early March New Chitose Airport In The Northern Japan Island Of Hokkaido After Customs Officials Found 25g Or" What Appeared To Be Hemp resin in his trouser pocket" .
The Sapporo District Court Handed Wadia A Two-year Prison Sentence, Which Was Suspended For Five Years.