CALCUTTA, February 14: Metal Box India Ltd today got the permission of its shareholders to shift its registered office from Calcutta to New Delhi, according to a release issued by its media consultant. The ailing company said that it planned to sell its second unit in Calcutta and the research division to generate funds for the revival scheme.At an extraordinary general meeting in New Delhi today, shareholders also approved the re-appointment of Vinod Krishna as managing director for a five-year term with effect from May 2, 1998, the release said.
The company had been referred to the Board for Industrial and Financial Reconstruction in 1987. The release said the resolution to shift the registered office from Barlow House in Calcutta was passed unanimously by the company's shareholders. The company had closed down its registered office in February 1997.
The move to shift the registered office was felt necessary since operational aspects had been centralised in Mumbai, while co-ordination with theconcerned authorities was being done in Delhi. The company, for the purpose of revival, needed constant interface with the authorities in Delhi.
According to the release, "The above logistics coupled with the call for economy and sheer survival require shifting of the registered office."
The release quoted Vinod Krishna as saying: "The EGM was held to table a vital aspect calling an amendment in the articles of association of the company to shift its registered office from Calcutta to Delhi. This was as imperative step in the survival and rehabilitation of the company as for 10 years business activities in the Calcutta sector have remained suspended.
``Two of Metal Box's factories are located in Calcutta and have closed indefinitely. It has become uneconomical and counter-productive to keep our registered office in Calcutta."
The revival plan drawn up by the company is based on the sale of the Worli property in Mumbai. The BIFR had finalised the Rs 139.82-crore rehabilitation package which included anotional realisation of Rs 91.54 crore from the sale of the Worli real estate.
However, due to objections from some quarters, the property was valued again and its price raised to Rs 96 crore. Again, there were objections from ANZ Grindlays before the Delhi high court that the property was undervalued.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
