India: Sebi to pass final order on Vijay Mallya holding board positions in listed companies soon
India’s stock market regulator will soon pass a final order on whether former liquor baron Vijay Mallya can hold board positions in listed companies, which will also end the country’s largest beer maker United Breweries’ long wait for a full-time chairman, the Economic Times reported on April 25.
Mallya — who the Indian government has been trying to extradite from Britain over charges of fraud for the past few years — has been reluctant to nominate a successor or step down from the board of United Breweries (UBL), a joint venture between him and the world’s largest brewer 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.
In that case, Mallya will be forced to quit United Breweries board for good and allow the company to finally have a full-time chairman.
UBL has been rotating its board members as acting chairman until now. Mallya did not respond to an email seeking comment. Some company officials hoped the next meeting would be the last to be chaired by an acting chairman.
“The company is functioning well and operations are in good shape-…but it is not good corporate governnance to have an acting chairman for so long,” a company board member said seeking anonymity.
Another official said, “The next annual general meeting will have to be chaired by the new chairman.”
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.”
The spokesperson declined to comment on the agreement that entitles Mallya to be UBL’s chairman for life.
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