The Maruti Udyog Ltd on Monday undertook a massive restructuring of its board by inducting three independent directors and one part-time director in the first board meeting held after the divestment of 27.5 per cent government equity in the car major.
Two directors on the board representing Suzuki also tendered their resignations in the meeting, which was attended among others by Suzuki Motor Corporation chairman Osamu Suzuki.
The independent directors are Kumaramangalam Birla, chairman of the Aditya V Birla Group and Amal Ganguli, former chairman of Price Waterhouse Coopers India.
Pallavi Shroff, senior partner of Amarchand and Mangaldas and Suresh A Shroff and Company is the third independent director, a Maruti statement said in New Delhi on Monday.
In addition, former managing director of Maruti, R C Bhargava, has joined the board as a part-time director.
The board also accepted the resignations of the finance director Motohiro Atsumi and director Hirofumi Nagao.
An audit committee and a shareholders or investors grievances committee were also constituted by the board as mandated by the stock exchanges.
Maruti said all the new members inducted were eminent people in their respective fields and would contribute to enhance the quality of corporate governance at Maruti.
This was the first board meeting of Maruti after the public issue, which resulted in the dilution of the government equity by 27.5 per cent to 17.5 per cent.
The meeting also coincided with the listing of the company's shares on the National Stock Exchange and Bombay Stock Exchange by July 9-10.
The Japanese automaker has a majority control in Maruti, in which the government had put on sale 25 per cent of its equity through the public offer, which closed on June 19.
The offer was initially planned for selling 7.2 crore shares along with a green-shoe option to retain a further 10 per cent.
The government later decided to exercise the green-shoe option following a massive response, especially from the retail investors, which resulted in an oversubscription of 13 times.
This increased the total size of the IPO to 7.9 crore shares.
Following the divestment, the government holding in the company has come down to 17.5 per cent. The remaining equity would be offered to the public through a second tranche slated to hit the market next year.
Last year, the government had ceded management control to Suzuki through a Rs 400 crore (Rs 4 billion) rights issue which was sold for a premium of Rs 1000 crore (Rs 10 billion).