MUMBAI: Wadia staff corporate Britannia Industries has sought exterior legal opinion over the continuation of Ness Wadia as director on the insistence of independent members of the board, following his conviction in Japan for possession of cannabis. The board has tapped retired Supreme Court chief justice TS Thakur for the opinion, mentioned people with wisdom of the topic.
The move via the independent directors came despite chairman Nusli Wadia presenting the board with an opinion from top jurist Fali S Nariman that had recommended his son staying on as director, they mentioned. The elder Wadia, however, subsidized the move for another opinion, it is learnt.
The independent board members also spoke one at a time with Ness Wadia, mentioned the folks cited above. The younger Wadia wasn’t present when the board conferred at the factor but attended the remainder of the assembly, which had been called to speak about profits.
A Japanese courtroom gave Wadia two years in prison remaining month for possessing 25 gm of cannabis resin but suspended the sentence for 5 years, permitting him to go back to India.
Lawyers vary on impact of ruling
A suspended sentence way he stays free for the length except he breaks the legislation once more in Japan.
There’s no consensus at the impact this will likely have on Ness Wadia’s position within the family-run Wadia Group. Stocks within the staff’s companies, after plunging on April 30 when the scoop become public, have recovered. Wadia is managing director of Bombay Burmah and a director of Bombay Dyeing, Britannia Industries and National Peroxide.
Nusli Wadia didn’t respond to queries.
Ness Wadia’s long run will hinge on whether or not his last a board member harms the spirit of corporate governance, mentioned one of the individuals cited above.
“We will take a choice in keeping with the view introduced via Justice Thakur,” he mentioned. “His offence in Japan does no longer fall under the serious category. So, a director at the board of a indexed corporate will even no longer be disqualified for this offence.”
Lawyers differed at the impact of the courtroom’s choice.
Ravi Singhania, managing spouse of legislation firm Singhania & Partners, made the point that the conviction wasn’t via an Indian courtroom. “Thus, under corporate governance provisions or other provisions of Companies Act, the Japanese courtroom’s choice would no longer impact his place as a director,” he mentioned.
He added that possession of a small amount of cannabis for personal use is also thought to be in a special mild via Indian courts, leading to a lighter punishment or effective. That the Japanese courtroom suspended the sentence for 5 years means that it’s no longer thought to be a serious offence in that country both, he mentioned. “Thus, under corporate governance provisions or other provisions of the Companies Act, the Japanese courtroom choice would no longer impact his place as a director,” Singhania mentioned.
Other experts mentioned that the jurisdiction where the offence passed off shouldn’t topic.
The Wadia Group had previous mentioned that the conviction would no longer prevent Ness Wadia from discharging his duties, whilst some experts have been of the view that he can have to fulfill the ‘fit and correct’ standards as it applies to corporate directors.
“Ness Wadia is in India. The judgement is apparent,” a Wadia Group spokesperson had mentioned on April 30 after the scoop become public. “It is a suspended sentence. Hence it will no longer impact Ness Wadia within the discharge of any of his duties and he's going to continue to play the position that he has performed hitherto, each inside the staff and out of doors.”
Britannia Industries reported an 11.eight% building up in consolidated internet benefit to Rs 294.27 crore for the March quarter from the year previous.
Total income rose to Rs 2,860.75 crore from Rs 2,581.93 crore. For the fiscal year ended March, internet benefit rose 15% to Rs 1,155.46 crore.
Justice TS Thakur become an extra judge of the Jammu & Kashmir High Court in 1994 and chief justice of India in December 2015, retiring in January 2017. He had ordered the dismissal of the highest management of the Board of Control for Cricket in India (BCCI) for failing to implement reforms really helpful via the Justice Lodha committee in 2017.
The move via the independent directors came despite chairman Nusli Wadia presenting the board with an opinion from top jurist Fali S Nariman that had recommended his son staying on as director, they mentioned. The elder Wadia, however, subsidized the move for another opinion, it is learnt.
The independent board members also spoke one at a time with Ness Wadia, mentioned the folks cited above. The younger Wadia wasn’t present when the board conferred at the factor but attended the remainder of the assembly, which had been called to speak about profits.
A Japanese courtroom gave Wadia two years in prison remaining month for possessing 25 gm of cannabis resin but suspended the sentence for 5 years, permitting him to go back to India.
Lawyers vary on impact of ruling
A suspended sentence way he stays free for the length except he breaks the legislation once more in Japan.
There’s no consensus at the impact this will likely have on Ness Wadia’s position within the family-run Wadia Group. Stocks within the staff’s companies, after plunging on April 30 when the scoop become public, have recovered. Wadia is managing director of Bombay Burmah and a director of Bombay Dyeing, Britannia Industries and National Peroxide.
Nusli Wadia didn’t respond to queries.
Ness Wadia’s long run will hinge on whether or not his last a board member harms the spirit of corporate governance, mentioned one of the individuals cited above.
“We will take a choice in keeping with the view introduced via Justice Thakur,” he mentioned. “His offence in Japan does no longer fall under the serious category. So, a director at the board of a indexed corporate will even no longer be disqualified for this offence.”
Lawyers differed at the impact of the courtroom’s choice.
Ravi Singhania, managing spouse of legislation firm Singhania & Partners, made the point that the conviction wasn’t via an Indian courtroom. “Thus, under corporate governance provisions or other provisions of Companies Act, the Japanese courtroom’s choice would no longer impact his place as a director,” he mentioned.
He added that possession of a small amount of cannabis for personal use is also thought to be in a special mild via Indian courts, leading to a lighter punishment or effective. That the Japanese courtroom suspended the sentence for 5 years means that it’s no longer thought to be a serious offence in that country both, he mentioned. “Thus, under corporate governance provisions or other provisions of the Companies Act, the Japanese courtroom choice would no longer impact his place as a director,” Singhania mentioned.
Other experts mentioned that the jurisdiction where the offence passed off shouldn’t topic.
The Wadia Group had previous mentioned that the conviction would no longer prevent Ness Wadia from discharging his duties, whilst some experts have been of the view that he can have to fulfill the ‘fit and correct’ standards as it applies to corporate directors.
“Ness Wadia is in India. The judgement is apparent,” a Wadia Group spokesperson had mentioned on April 30 after the scoop become public. “It is a suspended sentence. Hence it will no longer impact Ness Wadia within the discharge of any of his duties and he's going to continue to play the position that he has performed hitherto, each inside the staff and out of doors.”
Britannia Industries reported an 11.eight% building up in consolidated internet benefit to Rs 294.27 crore for the March quarter from the year previous.
Total income rose to Rs 2,860.75 crore from Rs 2,581.93 crore. For the fiscal year ended March, internet benefit rose 15% to Rs 1,155.46 crore.
Justice TS Thakur become an extra judge of the Jammu & Kashmir High Court in 1994 and chief justice of India in December 2015, retiring in January 2017. He had ordered the dismissal of the highest management of the Board of Control for Cricket in India (BCCI) for failing to implement reforms really helpful via the Justice Lodha committee in 2017.
Britannia seeks legal advice on Ness Wadia's role
![Britannia seeks legal advice on Ness Wadia's role]()
Reviewed by Kailash
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May 04, 2019
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