Keshub Mahindra re-elected M&M chief despite Bhopal conviction
29 Jul 2010
Putting to rest all speculation about the re-election of Keshub Mahindra as Mahindra & Mahindra chairman after he was convicted in the Bhopal gas disaster case, the company's shareholders put their weight solidly behind the octogenarian at its 64th annual general meeting on Wednesday.
Mahindra, now 86, was given an extension of his term as director and a resounding mandate to continue as the company's chairman for three more years. He was one of the five directors seeking re-appointment.
In the run up to the AGM, there was speculation that M&M shareholders may decide on a change at the top. In 1984, when the Union Carbide gas tragedy killed about 25,000 people and affected lakhs, Mahindra was the non-executive chairman of the company. After a trial that lasted over 25 years, he was convicted on 7 June when the magistrate's court in Bhopal sentenced all the eight accused to two years' imprisonment with a fine of Rs1 lakh each.
During the AGM, the mood of the M&M shareholders was actually quite upbeat and every shareholder supported Mahindra as they considered him to be innocent. While some recited poems and chanted prayers, a particular lady, so concerned about Mahindra's tryst with the law, gifted him a holy bracelet. "I am deeply touched and grateful for all your support," Mahindra said.
Mahindra, out on bail and having filed an appeal, did not talk about the conviction and the trial. He merely thanked all the shareholders who had given strong support to the resolution re-appointing him as a director.
It was widely speculated that Mahindra would have to relinquish the chairman's position and quit from the board following his conviction in the case. A person is disqualified from holding the post of a director in a company until his conviction is stayed, according to the Companies Act. But according to legal experts, Mahindra can continue with his position in M&M while filing an appeal in a higher court against the conviction.
