Legal tussle looms over PMMC Jewellery as Indian investor/director gets the boot
A cloud of apprehension is swelling up in the corridors of the PMMC Jewellery Ltd (PJL), a subsidiary of the Precious Minerals Marketing Company Limited after its Executive Director, Mr. Mayank Shah was told on Monday, April 29 he had been removed from his post.
Mayank Shah whose company, Aditan Enterprises has a 50 percent stake in the joint venture that is the PJL, was also handed a 92-hour ultimatum to vacate his residence.
The announcement was delivered by the board chairman during a meeting with about four other board members.
Invitations to the meeting signed by the board chairman had indicated it was an extraordinary general meeting of the members of the PMMC Jewellery Ltd, with the “removal and appointment of secretary” and “removal and appointment of directors” as the main agenda.
Graphic Online understands that the residence, previously an uncompleted building which Aditan rented from PMMC with the understanding that Aditan would complete the building with its own funds and occupy it for the duration of the joint venture.
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“He was escorted by the head of the company's security together with the board chairman, Kiston Kissi, and two other board members to go and grab whatever personal belongings he had and was thereafter virtually banished”, a distraught board member who thought the situation could have been better handled, told Graphic Online.
Until his removal, Mayank managed the marketing and production activities of the company from its beginning.
He also oversaw the day to day operations in terms of payments and procuring of gold for production, as well as marketing related matters and store management.
Board Chairman responds to Graphic Online
It is unclear what triggered the abrupt decisions, but Mr. Kiston Akomeng Kissi, board chairman tells Graphic Online “his removal was based on a business decision of the shareholders of PMMC Jewellery Ltd (PJL). He (Mayank) is a director but not a shareholder.”
Mayank himself is also diplomatic about the development and only acknowledges that his lawyers are studying his case.
When reached on the phone, one of his lawyers, Frank Davies explained that “it is a problem that is why he (Mayank) has notified his lawyers so we will deal with it.”
Mr Akomeng Kissi says that the joint venture agreement is still active, and that Mayank’s removal was in consonance with the procedure for removing directors as prescribed by the Companies Act, 1963 (Act 179) as amended.
On why Mayank has been asked to quit his residence, Mr Kissi offered the following explanation: “According to the Tenancy Agreement between PMMC and Aditan, the other shareholder, the tenancy was structured so as to last the duration of the JVA. However, Mayank Shah was occupying the place by virtue of his position as a director. And now that he is no longer a director, the company requires urgent use of same.”
Aditan, an Indian company, had been under the directorship of Mayank and Indian partner, Robin Metha until differences between them led to their split. Before the split however, the company had signed to partner the PJL to revive its production activities and fortunes.
The split between the Aditan partners which led to an agreed settlement to pay off Metha, had meant that Mayank was the sole representative of Aditan at PJL.
A source close to the company however said, the meeting that removed Mayank saw Metha invited into the meeting via video conference to agree to the removal of Mayank as a director.
It will be recalled that staff of PMMC went on demonstration in October last year, calling for the dissolution of the board amidst allegations that excessive, unapproved board allowances and unscheduled staff movements were hampering the company’s fortunes.
They also leveled allegations of procurement infractions and staff victimization against the management of the company, and demanded that the then Managing Director, Mr Opare Hammond be sacked from office.
Opare Hammond passed away in January of 2019.