Suzlon, India’s leading wind turbine manufacturer company has seen an exodus of independent directors recently. All independent Indian directors including bank nominees have resigned from the board over the past two months.
According to Business Line reports, Suzlon, India’s leading wind turbine manufacturer, defaulted on payment of Rs 1,169 crore ($172 million) due to its foreign currency convertible bond (FCCBs) holders in July. Since then, all independent Indian directors have resigned citing several reasons. CARE Ratings in April downgraded Suzlon’s debt to a default rating.
Suzlon has a debt of Rs 7,000 crore and is scouting for new investors by paring promoter stake.
One of the independent directors who quit said no director would like to remain with a company that had a defaulter status. “It affects the reputation of the director and the other companies that they are associated with”.
On October 4, Venkataraman Subramanian, one of the independent directors resigned from Suzlon citing increased commitments on the Boards of various other companies as well as his family commitments.
In the last week of September, Vijaya Sampath, another independent director resigned, saying that she to reduce her exposure in energy-related companies and focus more of her attention on the companies in which she continues to be an independent director.
Other Directors who have resigned are Ravi Uppal, former managing director (MD) and group chief executive officer (CEO) of Jindal Steel & Power, Nominee directors to the board from banks were IDBI Bank’s BG Kozipattu and State Bank of India’s Prathima Ram; they have also quit.
After this, Suzlon has 6 members on the Board, headed by Chairman and Managing Director Tulsi Tanti.