Allcargo to hold EGM on September 30 to dismiss Gati MD

MD Mahendra Kumar Agarwal currently holds unencumbered stake of 0.29 percent in Gati while another 6-8 percent is pledged with lenders

Allcargo Logistics will hold an extraordinary general meeting (EGM) on September 30 to remove Mahendra Kumar Agarwal from his position as Managing Director of Gati. This comes after Agarwal refused to step down despite Allcargo acquiring close to 47 percent stake in Gati.

The company got a green light for the move from a Supreme Court (SC) bench comprising Justices Rohinton Nariman, Navin Sinha and Indira Banerjee on September 4, after the Bombay High Court refused a similar request, Business Line reported.

Moneycontrol could not independently verify the report.

Altering the Bombay HC order, the SC said shareholders can call an EGM subject to prior notice, but added that any decision or resolution taken at the EGM would be effective only after “pending proceedings in the arbitration appeal in Bombay” are completed.

Agarwal currently holds unencumbered stake of 0.29 percent in Gati while another 6-8 percent is pledged with lenders, but challenged Allcargo’s demand to step aside on grounds that the share purchase agreement (SPA) is not yet fulfilled and hence the transaction is not complete, the report said.

Allcargo on its part told the court that Agarwal’s removal is a right backed by the company law.