Indian Largest car manufacturer
and seller has decided to seek approval from minority shareholders through
postal bailout of Maruti decision to handover Gujarat Plant to Suzuki.
This decision is take at
board meeting held on 15th March 2014 where all meeting is attended
by following persons:-
à Osamu Suzuki ,Suzuki Motor Corporation Chairman
àRC Bhargava, Chairman MSIL
àKenichi Ayukawa, Managing Director and CEO, MSIL
Independent directors
à Amol Ganguli ,ex PwC head
àDS Brar ,Ranbaxy chief
RC Bhargava, Chairman, MSIL said
after Board meeting that “ “Even though not required by law, the board decided,
as a measure of good corporate governance, to seek minority shareholders'
approval as stipulated in Section 188 of the Companies Act 2013,”
This Board meeting is
held for next year financial budget where Rs. 4000 crore is approved for next
financial year for:-
è
New Car Models
è
R&D
è
Marketing
In Current had invested
about Rs 3,000 crore for the current financial year.
For Gujarat subsidiary all
capital expenditures will be funded by SMC without the ‘mark-up’ cost that
Maruti would had to pay on very vehicle as was earlier proposed.
It has been also decided that “In
the event of termination of the contract manufacturing agreement for Gujarat
Plant, the facilities of the Gujarat subsidiary would be transferred to MSIL at
book value.”
This decision is accepted by
Independent directors.
This deal was opposed by 4 insurance co’s and 12 Mutual
funds.