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Atlas Cycles' Arun Kapur to move CLB over sacking

BS Corporate Bureau

Arun Kapur, son of the late B D Kapoor of Atlas Cycles, who has been removed from the post of additional joint president of the company, has decided to approach the Company Law Board for a redressal in case he does not get a satisfactory reply from the board of directors of the company.

Kapur says the issue of his removal from the board was not on the agenda for the Atlas Cycles board meeting on April 17 and it was also not discussed.

"The board did not issue a show-cause notice against me or even give me a chance to explain my position. It just sent me a fax on April 18 saying that I have been relieved of my duties," Kapur said.

While Kapur has already written to all the members of the board, he is certain that he will approach the CLB to appoint an independent valuer like KPMG or PricewaterhouseCoopers who would ascertain the true state of affairs of the company.

The board has charged Kapur of mismanagement of departments headed by him. Kapur said the independent valuer should ascertain the true picture.

He adds that his removal took place because Rajiv Kapur - one of his brothers - joined his uncles and their sons, which tilted the balance in their favour.

In January 1999, it was decided by the Kapur family that, as the business grew, all the family members wanted to diversify in various fields and thus it was prudent to divide the assets equally amongst the family.

A memorandum of understanding was signed which said that, till the assets were divided, a status quo would be maintained according to which whoever was taking charge of whichever business would continue to do so.

Arun Kapur was looking after the Malanpur unit in Madhya Pradesh. The unit accounted for 80 per cent of the company's profitability and was thus the root cause of the problem, he said.

In 2000, after the death of B D Kapur, the tussle for power started in the company. A joint management committee (JMC) was set up with three members including the other two uncles - Jaidev Kapur and Jagdish Kapur - and Arun Kapur. Arun Kapur says he was never a party to what was happening in the company.

JMC rules said that in case of dissent from any member, the member can put down his dissent which would be taken up by the board which will in turn listen to both the members before passing a final order.

Kapur suggested that an independent valuer be appointed to look into all aspects of the company so that a check could be maintained on the company's operations.

"My suggestions and pleas were continuously ignored and thus I told the board of directors in the last meeting held in March that I have no option but to approach the CLB," Kapur said.

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