25 June 2007: The Stock Holding Corporation of India Ltd (SHCIL) is well on its way to acquire full management control of its controversial former subsidiary SHCIL Services Ltd (SSL). SSL’s board meeting on Saturday, which was called at SHCIL’s instance, saw some sweeping changes in the management structure with the induction of six new directors. More importantly, the powers of S.Ramanathan, the once powerful CEO and co-conspirator with SHCIL former chief R.Jayaraman Iyer, has seen his wings clipped and his powers drastically curtailed. It is however not clear why he remains on the board of SSL after the serious charges levelled against the company under his management in SHCIL’s petition before the Company Law Board (CLB).
Nitin Jog, who is already a SHCIL nominee on SSL, remains on the board. Mr. Dinesh Shah, a Senior Vice President at SHCIL, as well as R.K.Bansal, the IDBI Bank nominated Whole Time Director, have also been inducted on the board, including three other institutional nominees whose names are not yet available. Mr.Shah is expected to take charge as CEO of SSL sometime in the near future.