Murugappa family female heir sends legal notice

Chennai, Oct 8 One of the female heirs of the industrial conglomerate, the Rs 38,105 crore Murugappa Group, Valli Arunachalam on Thursday said she has sent a legal notice to the Murugappa family members, Ambadi Investments Ltd (AIL) and its management and other persons connected thereto.

In a statement issued, Arunachalam said: "On behalf of my mother, sister and me, I can hereby confirm that following careful and thorough deliberation and in consultation with our independent advisors, we have decided to seek legal remedies with respect to our ongoing efforts to settle my father's will."

She said legal notices have been issued to the Murugappa family members, Ambadi Investments Ltd. and its management and other people in relation thereto.

She said it was a big and unfortunate step for her family despite trying out an amicable settlement over the last three years.

Ambadi Investments owned by the Murugappa Group promoter family is the ultimate holding company of the group.

The US-based Arunachalam, the daughter of late M.V. Murugappan, had alleged that the group promoters have a gender bias against women getting into the family business and hence she and her sister were denied a board berth in Ambadi Investments after their father's death in 2017.

She had said her family owns about 8.15 per cent stakes in Ambadi Investments.

Arunachalam said efforts were made to bring about an amicable settlement including engagement of an independent mediator.

Each entreaty has been met with some combination of silence, combativeness, false assurances, and delay tactics, she said.

"What is clear to us after three years is that the family's tactics are nothing more than a robe to conceal their socially regressive gender bias," Arunachalam alleged.

Arunachalam said a considerable portion of her late father's estate is tied to Ambadi Investments, and it is entirely unreasonable to expect her family to relinquish control and visibility over these holdings to the broader Murugappa family.

"To date, no logical or legally valid explanation has been provided by the Murugappa family as to why my family should be subordinated in this manner," she said.

Following the provisions of section 160 of the Companies Act, Arunachalam has offered her candidature for the appointment as a Director in Ambadi Investments.

As per the notice calling the annual general meeting (AGM) of Ambadi Investments, Arunachalam had sent a notice on August 5, 2020 along with a deposit of Rs 1,00,000 proposing her candidature for the Director's post.

At the AGM majority of the shareholders of Ambadi Investments uncles and cousins of Arunachalam voted against the resolution proposing her candidature for appointment as a Director.

"With the family voting unanimously to reject my appointment to the AIL board, we have seemingly reached the end of the road for an amicable settlement," Arunachalam said.

But a cursory glance at the voting pattern on various other resolutions signals divisions in the Murugappa family.

The resolutions moved for the reappointment of M.M. Venkatachalam and M.A.M. Arunachalam as non-Executive Directors of AIL were opposed by two shareholders with 8.63 per cent voting rights.

Similarly, the resolution for confirmation of two interim dividends declared and paid for the financial year 2019-20 to those members whose names appear in the Register of Members as on the record date was also opposed by two shareholders with 8.63 per cent voting rights.

The three resolutions were passed by 51 shareholders with 91.37 per cent voting rights voting in favour.

They were moved before the resolution for the appointment of Arunachalam as Director was moved.

A mail sent to Arunachalam earlier querying about the voting pattern and whether she and family (mother and sister) had voted against the resolution moved for the appointment of Venkatachalam and Arunachalam remains unacknowledged till now.

( With inputs from IANS )