Govt looks at banning Mahindra from boards | business | Hindustan Times
Today in New Delhi, India
Dec 17, 2017-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Govt looks at banning Mahindra from boards

Amid strong public reaction to the judgment in the Union Carbide case, the government is understood to be looking at legal position to check if Carbide India’s non executive Chairman Keshub Mahindra could be barred from taking directorship in any company.

business Updated: Jun 11, 2010 22:18 IST

Amid strong public reaction to the judgment in the Union Carbide case, the government is understood to be looking at legal position to check if Carbide India’s non executive Chairman Keshub Mahindra could be barred from taking directorship in any company.

Corporate Affairs Minister Salman Khursheed is believed to have asked his officials to study relevant portion of the Companies Act. "Sections 283, 269, 203 and 274 of the Companies Act, 1956, refer to disqualification of a director if convicted by a court of law," an official said.

However, as per legal opinion obtained by the Mahindra Group, its founder Chairman Keshub Mahindra could retain his position across companies, as he still has the option of challenging the verdict of two-years' imprisonment handed to him and six others by a Bhopal Court for the tragedy in the city that claimed over 15,000 lives.

"Mahindra will prefer an appeal, against the order of conviction and sentence within the stipulated period of 30 days," Mahindra & Mahindra said in a statement.

Mahindra is on the board of about 10 companies including HDFC and Bombay Dyeing, besides his group companies.

Besides businesses ranging from auto to software, Mahindra, is also a member of the Prime Minister’s Council on Trade and Industry.