The longstanding dispute between the Chhabria cousins at Finolex Group has resulted in Deepak Chhabria’s removal from the board of Finolex Cables. Deepak Chhabria, who served as chairman of Finolex Cables for a decade, was compelled to step down following the Supreme Court’s reprimand of the National Company Law Appellate Tribunal (NCLAT). Prakash Chhabria is now expected to seek control of the company. Shares of Finolex Cables experienced a 1.47% increase on Friday. The fight for control of the company is expected to escalate.
The Supreme Court’s intervention in the dispute between the Chhabria cousins signifies the level of seriousness of the matter. Deepak Chhabria’s removal from the board indicates a significant change in the company’s leadership and decision-making processes. Prakash Chhabria’s intention to claim the position reveals the determination to gain control over Finolex Cables and potentially reshape its future direction.
The dispute surrounding the leadership of Finolex Cables has drawn attention from investors and analysts. The uncertainty regarding the company’s future has impacted its stock performance, as demonstrated by the recent rise in shares following the news of Deepak Chhabria’s removal. This suggests that investors are cautiously optimistic about the potential changes in leadership and the resolution of the long-standing feud.
The Chhabria cousins’ conflict is not limited to Finolex Cables. They have had disagreements within the broader Finolex Group, which includes various companies in the cable and electrical equipment sectors. The power struggle between the two cousins has created a significant rift within the family-owned business empire.
The Supreme Court’s reprimand of the NCLAT demonstrates the court’s commitment to upholding corporate governance and ensuring the fair and transparent functioning of companies. The court’s intervention indicates its recognition of the potential impact of family disputes on the overall functioning and stability of companies, particularly those with significant market presence and influence.
In conclusion, Deepak Chhabria’s removal from the board of Finolex Cables marks a new chapter in the ongoing feud between the Chhabria cousins. The fight for control of the company is likely to intensify as Prakash Chhabria seeks to stake his claim. The impact of this power struggle on the future direction and stability of Finolex Cables remains to be seen.
