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Badal Sanyal

KOLKATA, Feb. 3

THE Shaw Wallace Employees Federation and Shaw Wallace & Its Associated Employees' Union ( SWIAEU) have declared that, at this point of time, Shaw Wallace & Company (SWC) does not need to have on the company's board any outside directors appointed by the Company Law Board.

The federation withdrew the petition demanding appointment of CLB-nominated outside directors on the SWC board after signing a memorandum of settlement with the management.

Responding to the federation's petition under Sections 397 & 398 of the Companies Act, CLB had issued an order in July 1998, directing the SWC management to appoint outside directors on the company's board. The issue had since been declared sub judice and no outside director was appointed.

While signing the memorandum of settlement for voluntary retirement scheme 2001 for a total 171 employees at the company's registered office here, SWIAEU and the federation declared that all the allegations made by them in their complaints/ representations to the Department of Company Law Affairs and other authorities and on the basis of which the Union Government had filed a petition under Section 408 of the Companies Act, 1956 against SWC "stand withdrawn.''

SWIAEU and the federation said in the memorandum of settlement that there had been substantial change for the better in the financial and liquidity position of the company since 1996. "Hence it is not at all necessary at this point of time to have on the SWC board the outside directors appointed by CLB.''

They said they had objection to the shifting of the company's registered office from Kolkata to Mumbai from the date of signing the memorandum of settlement, upon the company/ management making payment as per the settlement. The SWC management has also been allowed to operate its eastern region operation from the Wallace House at 4, Bankshall Street instead of 30, Bondel Road.

However, the memorandum of settlement has been worked out to be Rs 4.53 crore in total, subject to adjustment of outstanding individual loans and advances. It is agreed that the voluntary retirement compensation shall be paid in six monthly instalments with effect from December, 2001.

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