LONDON (dpa-AFX) - Brewer Diageo Plc. (DGE.L, DEO) said that it will consider its position under its agreements with Vijay Mallya and United Breweries (Holdings) Limited or 'UBHL' in light of inquiry report and materials provided to it.
Diageo, which is the majority shareholder in USL with a 54.78% holding, provided the update following the announcement by United Spirits Limited or 'USL'or the company and on 25 April 2015 in relation to its internal inquiry into certain matters referred to in USL's financial statements and the auditor's report for its financial year ended 31 March 2014.
In its announcement, the board of USL stated that they had lost confidence in Vijay Mallya continuing in his role as a director and as chairman and therefore the board of USL called upon Mallya to resign forthwith as a director and as chairman of the board and step down from his positions in the Company's subsidiaries.
The board of USL also resolved that, in the event Mallya declined to step down, it would recommend to the shareholders of the Company the removal of Mallya as a director and as the chairman of the board. Mallya has indicated he will not tender his resignation.
As previously indicated by Diageo, it has certain contractual obligations to support Dr Mallya continuing as non-executive director and chairman of USL subject to certain conditions and in the absence of certain defaults, Diageo said.
USL has provided its inquiry report and all related materials to Diageo.
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