Finolex Cables Limited (FCL) and Finolex Industries Limited (FIL) form part of the Finolex group. The ownership of these companies is characterized by a byzantine web of crossholdings characteristic of the pre-liberalization era.
The promoters (Chhabria family) hold 35.92% in Finolex Cables, with Orbit Electricals Private Limited (Orbit) holding a bulk (30.75%) of the equity. In addition, Finolex Industries holds 14.51% of the equity - although it is classified as a public shareholder. The promoters hold 52.47% of the shares in Finolex Industries with 32.39% being held through Finolex Cables and 18.8% held through Orbit.
Following a series of judicial developments, Deepak Chhabria has ceased to be Whole-time Director designated as “Executive Chairman” of the Company with effect from 16 October 2023. But this may well be a marker, albeit an important one, the family feud.
The battle raises some important issues, including the role of the scrutinizer, the timeline for the reappointment of executive directors and the guardrails to protect the non-family shareholders.
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