“It is evident that the family cannot tolerate women in their boardrooms, and they have showcased their considered view in this regard,” said Valli Arunachalam, slamming the Murugappa group and the way it allegedly conducted itself at the board meeting. On Monday, the board of directors of the Murugappa Group’s family holding firm Ambadi Investments Limited (AIL) — where the family members are the majority shareholders — voted against Valli in getting a position on the Board.
Valli also said in a statement that her family (mother and sister) will pursue justice and take all steps necessary, even if it means taking the battle to the courts. 91% of the board voted against her appointment as director at the company’s annual general meeting.
“Our family branch has been asking the majority shareholders in AIL (Ambadi Investments Ltd) to settle our shareholding in a fair manner. We made multiple attempts to ask the family to settle us per my father's wishes by purchasing our stake in AIL at fair value. We have proposed many ways in which they can settle the matter amicably, including mediation, and they have refused,” she said in a statement.
Valli has been asking for a board seat for over a year now, pending the settlement, to make sure her and her family’s rights are preserved as promoter and major shareholder. She even had to fight for her nomination to be allowed.
“Finally, they agreed to allow my Board nomination, but they did not appoint me in the interim, and asked me to wait for the next AGM, which was more than 9 months away. Now, yet again they have made clear their intent of continuing the oppressive and vexatious conduct against us,” she added.
She added that it is very unfortunate that the shareholders of Ambadi, the overwhelming majority of whom are also board members, are not able to understand what contributions women can make on the board.
She added that it is a clear indication that gender bias exists at the highest levels of the Murugappa group.
Valli Arunachalam is the daughter of the late MV Murugappan, former executive chairman of the Murugappa Group and the grandson of Murugappa Group founder Dewan Bahadur AM Murugappa Chettiar.
When he passed away in 2017, he left his 8.15% stake in Ambadi Investments to his wife and his two daughters. Valli either wanted to sell the family’s stake to another family member, or get a seat on the board of Ambadi. As a shareholder, it is a right, she can seek to exercise and be voted on.
“The question remains as to why a female heir with a doctorate degree, 24 years work experience in fortune 500 multinational companies, and numerous patents and publications to her name, cannot be inducted to the board, even three years after her father’s death, despite being representative of the same shareholding whilst a 23-year old male heir with a master’s degree and no job-experience can be inducted to the board soon after his father’s passing,” she questioned.
Valli quoted late US Supreme court Judge Ruth Bader Ginsburg from 2009 as saying, “Women belong in all places where decisions are being made” and it cannot be truer for this company, she added.
Valli said that her family will pursue justice and take all steps necessary.
“It was always our wish that the family issues remain within and are settled at the family level, but clearly it seems the family is more concerned about protecting its draconian perspectives and practices, even if it means forcing us to take the battle to courts. We will not shy away this time,” she added.