Mallya’s last nominee on UBL board to step down | Economic Times

Ravi Nedungadi, the only remaining nominee of Vijay Mallya on the board of United Breweries, will step down at the company’s annual general meeting on July 29.Majority shareholder Heineken has named Berend Odink as director and the chief financial officer of United Breweries to replace Nedungadi, who has been on the board since 2002.However, even with a 61.5% stake or 75% shareholder approval, the maker of the Kingfisher beer cannot appoint its own chairman unless it reaches an understanding with Mallya, who is its chairman for life or can nominate his choice of successor as per the shareholder agreement. Stephan Gerlich, who has been on its board as a Heineken nominee since 2010, is tipped to be the next chairman with Mallya's approval, unless he favours another nominee, executives in the know said.Independent directors have been nudging both partners to appoint a chairman formally after years of holding meetings with an acting chairperson.Heineken did not comment.Heineken’s acquisition of Mallya’s shares from the Debt Recovery Tribunal (DRT) has increased its shareholding in the company to 61.5% from 46.5% earlier. Mallya is currently fighting extradition attempts by Indian regulators and has challenged the DRT's sale of shares to Heineken. 84357885Mallya resigned from the UBL board in 2017 after markets regulator Securities and Exchange Board of India disqualified him from being a director of any listed company.Heineken has till date opted to stay low profile in the partnership. It has never got into conflicts with its partners worldwide and did not want to do that in India too with Mallya who, although was forced to step down the board, has refused to nominate a chairman."Everyone has now lost patience with the situation and it is not good corporate governance to let it be. Heineken too realises this and is in discussions with Mallya to resolve the situation before the AGM end of the month," said an executive close to the development.