Battle for control is on in 'The Hindu' among family members

The battle for control has commenced in the 132-year-old highly respected one of India’s top most newspapers, The Hindu. The Delhi edition of the Indian Express has reported the fight for power among the family members of The Hindu Group of Papers, bringing out The Hindu, Frontline, Business Line and Sportstar, published by Kasturi & Sons Ltd.

The first casualty in the battle may be Managing Director N Murali, Editor-in-Chief N Ram’s younger brother. With Murali’s position re-designated as senior Managing Director last week and K Balaji, a member of the extended family, also a board member, brought in as second MD, all the problems has started. Also the power has been distributed among all the directors. The board is split, one majority group supporting Ram and the other seeking his retirement.

The paper also reports that at a meeting held last September, Murali, who also looked after administrative processes at the company, proposed governance norms for retirement of family members on the board. Ram, who turns 65 this May, was identified as the first member to step down from the board followed by Murali and N Ravi, who will turn 65 in August 2011 and 2013 respectively.

In a follow-up meeting held in February, however, Ram is said to have declined to give up the positions he holds across the company, including the board membership. According to Ram: “No retirement age has been stipulated for directors or the editor-in-chief or editor etc. No retirement age is stipulated in the Memorandum and Articles of Association of the Company.”

This was strongly objected to by Murali, Ravi and Malini Parthasarthy, who also pointed out several alleged financial irregularities in the way in which Kasturi’s resources, financial as well as editorial, were used to further the interests of some board members.

At another stormy board meeting held on March 20, no amicable settlement has been reached. The standoff continues.

Mr. Ram said today in his paper that the Board of Directors of Kasturi & Sons Limited, publishers of The Hindu, Business Line, Frontline, and Sportstar, took the following decisions in its meeting of March 20, 2010:

Mr. N. Murali has been re-designated Senior Managing Director of the Company and will have the responsibility and supervisory powers of the department of Circulation.
K. Balaji has been appointed Managing Director of the Company with effect from March 20, 2010.

Mr. N. Murali, Senior Managing Director, and Mr. K. Balaji, Managing Director, will have responsibility and supervisory powers of the department of Accounts.

Mr. N. Murali will share the responsibility of the Industrial Relations function with Mr. K. Balaji, Dr. Nalini Krishnan, and Mr. R. Ramesh.

Mr. K. Balaji, Managing Director, will have the responsibility and supervisory powers of the departments of Production and EDP. He will also handle all matters relating to the purchase of newsprint and other raw materials.

Dr. Nalini Krishnan and Ms. Vijaya Arun will have the responsibility and supervisory powers relating to General Administration, Employee Health and Welfare, and Corporate Social Responsibility.

Mr. R. Ramesh will have the responsibility and supervisory powers of the department of Advertising.

Ms. Akila Iyengar will have the responsibility and supervisory powers for overseas business.
Ms. Lakshmi Srinath will have the responsibility and supervisory powers for Group events.

- Asian Tribune -