Chettinad Group chief Ramaswamy unseated

Chettinad Group chief Ramaswamy unseated

Shareholders of the Chettinad Group of companies on Wednesday resolved not to reappoint the group’s chairman and former Rajya Sabha member M A M Ramaswamy  director of the board. 

A resolution to this effect was passed at the group’s annual general body meeting. “Resolved that Dr M A M Ramaswami, Director, who retires by rotation pursuant to Section 152 of Companies Act, 2013, be and is hereby not reappointed as Director of the Company,” the resolution said.

Ramaswamy did not attend the meeting following hospitalisation on Tuesday night after the CBI questioned him in connection with the bribery case involving Tamil Nadu Registrar of Companies Manu Needhi Cholan, who was arrested by the agency. 

With shareholders rejecting Ramaswamy’s reappointment as chairman, the top position at the Chettinad Cement Corporation would become vacant. “The meeting did not propose any new name for appointing chairman,” a shareholder said.

Sources said that the whole drama comes against the backdrop of an attempt by some of the company’s officials, led by Ramaswamy’s adopted son M A M R Muthiah, to seize control of the group.

Since his adopted son Muthiah took over as managing director of the group in 2000, Ramaswamy was playing a supportive role. After his wife Sigapi Achi died, the relations between foster father and adopted son became strained.