“Ambadi Investments is holding its annual general meeting (AGM) on September 21 and considering Valli Arunachalam’s candidacy to accommodate her on the board of directors is one of the items on the agenda,” said one of the two development conscious people. “The company had requested some documents in this regard a few weeks ago, which were also provided by it.”
Arunachalam, a nuclear engineer by training, is the eldest daughter of former CEO MV Murugappan, who died in 2017. Arunachalam says she was denied a position on the board of Ambadi Investments, despite being his heir. Arunachalam, 59, her sister and mother have an 8.15% stake in AIL. “I intend to carry out my duties as director to the fullest extent possible,” she told ET in an email. “I am a senior technocrat in my family and I have tremendous experience in the business. I intend to take advantage of all that experience and contribute to the growth of the company and the business.”
She confirmed that her appointment as director is on the agenda. “I am glad that the family appears to be seeing the light of day and that the board (which is primarily made up of family members) has placed my appointment on the AGM agenda,” Arunachalam said. “Given that the family controls the majority stake in the company, I would like to believe that it is a foregone conclusion that I will be appointed director of the AGM.”
ET was the first to report the matter on January 4.
‘A significant shareholder’
Under the Hindu Succession (Amendment) Act 2005, women could become karta – or head – of the family and daughters became co-parents, allowing them to inherit as much as sons. Arunachalam is karta of the MVM Hindu Undivided Family (HUF) branch, which owns the stake in Ambadi Investments.
“Our point has been simple: since our family has a limited stake in the businesses of the operating companies after my father’s death, we should be settled and the family can absorb our stake in Ambadi. This is also consistent with wishes. from my father, “he said. Arunachalam, based in New York. “My father, throughout his life, represented our branch of the family on the AIL board, and it would have been in the interests of justice if we had a seat on the board since he passed away, as we are a significant shareholder and promoter. “Arunachalam’s mother and sister support his candidacy for representation on the board.
Founded in 1900, Murugappa Group currently controls more than two dozen companies, including nine publicly traded companies: Coromandel International, EID Parry (India), Shanthi Gears, Carborundum Universal, Tube Investments of India, Wendt (India), Cholamandalam Financial Holdings and Cholamandalam. Investment and Finance Company among others.
MV Subbiah, the patriarch who guided a generation of family members to leadership roles, and MA Alagappan, the group’s former chief executive, did not respond to questions.
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