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Deepak Parekh quits Philips boardnews
N. Mohan
23 March 1999
Deepak Parekh, chairman of the Housing Development Finance Corporation Ltd, resigned from the board of Philips India Ltd, after an 11-year stint as non-executive director. Parekh cited in his 2 February letter to Philips India chairman D.N. Ghosh lack of time as the reason for the resignation. But the sudden development is interpreted as a protest against the company's decision to sell its colour TV manufacturing facility in Salt Lake City in Calcutta to the Videocon group and the management's attitude to the employees and the shareholders.

Parikh is understood to have given enough hints about his unhappiness to the employees' representatives after the extraordinary general meeting of the company on 4 December last. He had clearly indicated that he would seriously consider the request of the employee shareholders of the company to resign from the board "to protest the high-handedness" of the Philips board. The financial institutions as well as the Philips Employees Union had opposed the resolution for the sale of the plant at the EGM and had sought a poll on the issue.

The management had subsequently gone ahead with the sale of the plant to a Videocon group company at a price of Rs 9 crore. The Philips Employees Union had then approached the Calcutta high court, which stayed the sale deal stating that the "consideration of Rs 9 crore is neither realistic nor is justified". Parekh, in his letter of resignation said his pressing engagements in HDFC, the Infrastructure Development Finance Company and various committees of the government left him with little time for Philips. The Philips board accepted Parekh's resignation at its meeting on 26 February.

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Deepak Parekh quits Philips board