Shareholders in Diageo-controlled United Spirits Limited (USL) have set a date on which they will decide the fate of company chairman Vijay Mallya.
Diageo could stand to lose shares worth £315 million from its Indian subsidiary United Spirits (USL) if “adverse” rulings are taken on legal proceedings against its former holding company.
A battle has erupted between Diageo and Vijay Mallya over his position as chairman of United Spirits, after a report has alleged past financial irregularities in the company’s accounts.
India’s biggest spirits group United Spirits is to try again for shareholder approval to produce and market Diageo brands in the subcontinent.
Vijay Mallya has been re-elected chairman of United Spirits despite being declared a “wilful defaulter” last month.
Diageo-led spirits producer United Spirits has blocked a key revenue stream for the beleaguered UB Holdings by taking control of exports.
Three independent directors have quit United Spirits’ board days after Diageo launched an investigation into the company’s finances.
Billionaire chairman of United Spirits, Vijay Mallya, has been declared a “wilful defaulter”, calling his position as chairman of the company into question.
The boss of Indian producer United Spirits may have to quit the company’s board if he is found to be a “wilful defaulter” over the company’s outstanding debts.
Ivan Menezes, Diageo’s new chief executive, has bid £1.13bn for control of India’s United Spirits, the sub-continent’s dominant spirits group.
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