Samir Modi not entitled to perpetual directorship, court rules

New Delhi: A Delhi Court has held that Samir Modi is not entitled to perpetually continue as a Director of Godfrey Philips and will have to follow the process of reappointment as per the procedure prescribed under the law. District judge of Saket Court Rahul Bhatia held against Samir Modi and vacated the ex-parte injunction on the exit of Godfrey Philips from the retail business “24 Seven.” The exit was announced by the company in April 2024. The court noted that it was evident from the fact that Samir Modi has been reappointed on various occasions when he was required to retire by rotation in terms of the Companies Act.

“Section 152 of the Companies Act deals with the appointment of directors. Subsection 6 of the said section requires that not less than two-thirds of the total number of directors of a public company shall retire by rotation every year,” the court said in its order of July 30.