The country’s largest automaker Maruti Suzuki has revealed its plans to set up its wholly owned manufacturing plant in Gujarat. The amendment in the companies act is stated to have helped for the company to get share holders approval for its new ideas.
Speaking more on the occasion, RC Bhargava, Chairman of Maruti Suzuki was quoted as saying, “We would now go ahead and decide the time table for the voting on the issue. We have been waiting for the proposed changes in the Companies Act and would proceed accordingly to seek minority shareholders' approval.”
The recent clearance of about 16 amendments in the company’s act, 2013 by Rajya Sabha, which also included replacing ‘special resolution’ with ‘ordinary resolution’ for approval of related part transactions by company’s minority shareholder, is said to have helped with Suzuki’s plan if 50% of Maruti’s minority shareholders support the proposal.
Source: BI
