VG Siddhartha dead: CCD appoints SV Ranganath as interim chairman of company board, Nitin Bagmane as COO
After the sudden tragic demise of the company founder VG Siddhartha, the CCD (Cafe Coffee Day) appointed Nitin Bagmane as an interim chief operating officer of the company
The Coffee Day Enterprises' board has held an emergency meeting today following the death of the company founder VG Siddhartha
The company appointed Nitin Bagmane as an interim chief operating officer of the Company
The company also appointed SV Ranganath (Non-Executive Independent Director) as the interim chairman of the Board
After the sudden tragic demise of VG Siddhartha, founder, Cafe Coffee Day, the board appointed SV Ranganath (non-executive independent director) as interim chairman and Nitin Bagmane as the interim chief operating officer of the company.
The company board, wherein Siddhartha's wife Malavika Hegde is also a director, met on Wednesday to put in place a working structure of the company.
It also constituted an executive committee comprising Ranganath, COO Nitin Bagmane and CFO R Ram Mohan "to exercise the powers previously vested with the Chief Executive Officer of the company and the Administrative Committee constituted by the Board in 2015," it said.
In the regulatory filing to the stock exchanges, the company said: The Board remains deeply committed to safeguarding the interests of all stakeholders, including investors, lenders, employees, and customers. The Board took the following decisions at its board meeting: (i) Appointment of SV Ranganath as the interim chairman of the Board. (ii) Appointment of Nitin Bagmane as an interim chief operating officer of the Company on terms to be detailed and approved by the Board. (iii) Constitution of an executive committee comprising SV Ranganath (Non-Executive Independent Director), Nitin Bagmane (COO) and R Ram Mohan (CFO) to exercise the powers previously vested with the Chief Executive Officer of the Company and the Administrative Committee constituted by the Board in 2015. The Board will, in due course, prepare a detailed charter of authorities vested in the Executive Committee and approve the same. The Executive Committee will, inter alia, explore opportunities to deleverage the Coffee Day Group.
The Board took cognisance of statements in the purported letter from VG Siddhartha relating to financial transactions outside the knowledge of the senior management, auditors and the Board. While the authenticity of the letter is unverified and it is unclear whether these statements pertain to the Company or the personal holdings of VG Siddhartha, the Board took serious note of the same and resolved to thoroughly investigate this matter, the company said in a regulatory filing.
It further said the Board noted with profound regret the tragic demise of VG Siddhartha and his matchless energy, vision and business acumen which helped to single-handedly build the Company. The Board expressed its condolences to VG Siddhartha's family and resolved to lend its support and expressed full confidence in the Company's management team. The Board also took note of a message from Malavika Hegde, expressing support and trust in the Company's professional team and the common effort to look after the interest of the employees and all other stakeholders.
The Audit Committee and Executive Committee will engage in discussions with the statutory auditors of the Company and such other advisors as may be necessary with a view to recommend appropriate next steps to the Board at its forthcoming meeting on 8 August, the company said.
The Board has also appointed Cyril Amarchand Mangaldas as its legal counsel to advise it on all related matters, the company said.
--With PTI inputs
CCD board meeting: Coffee Day Enterprise appoints EY to scrutnize book of accounts; investigate into VG Siddhartha purported letter
Coffee Day Enterprises on Thursday said it has appointed global accounting firm EY to scrutinize the books of accounts of the company and its subsidiaries
Shares of Coffee Day Enterprises further plummeted 10 percent to hit its lowest trading permissible limit for the day on Thursday as investor sentiment remained hit for the third consecutive trade amid a slew of negative news surrounding the company