Chennai Meenakshi Multispeciality Hospital Limited (CMMH) has announced the completion of a significant share transmission process, reshaping its promoter group structure following the demise of a key promoter. The company has made these changes in compliance with regulatory requirements.

Share Transmission Details

The transmission process involved 37,57,166 equity shares, representing 50.30% of the company's total outstanding share capital, previously held by the late Mr. A.N. Radhakrishnan, who passed away on December 3, 2022. Following a legal settlement reached through mediation at the High Court of Madras on July 31, 2024, the shares were distributed among four legal heirs on December 16, 2024.

New Shareholding Structure

The distribution of shares among the legal heirs is as follows:

Promoter Group Reclassification

In accordance with Regulation 31A(6)(a) of SEBI Listing Regulations, all legal heirs who received the transmitted shares have been reclassified as promoters. This includes Mrs. Jayanthi Radhakrishnan, Mr. G. Ra. Gokul, Mr. R. Rakesh, Mr. Arvind Srinivas, and Mr. Gautam Srinivas.

Additionally, Mr. Akash Prabhakar, who holds 37,000 shares and is a son of Mrs. Jayanthi Radhakrishnan, has also been reclassified as a promoter due to his relationship with a promoter family member.

Correction in Shareholding Pattern

CMMH has acknowledged that there were typographical errors in the shareholding pattern submitted for the quarter ended December 31, 2024. The company has since corrected these errors and filed a revised shareholding pattern with the BSE.

Management Statement

R. Gomathi, Chairman & Managing Director of Chennai Meenakshi Multispeciality Hospital Limited, stated, "We have completed the share transmission process in accordance with the legal settlement and regulatory requirements. The revised shareholding pattern accurately reflects the new promoter group structure."

The company has emphasized that these changes were due to typographical errors and were not intentional. CMMH has requested the BSE to take the corrected information on record.

This share transmission and subsequent reclassification of promoters mark a significant change in the ownership structure of Chennai Meenakshi Multispeciality Hospital Limited, potentially impacting the company's governance and decision-making processes moving forward.

Chennai Meenakshi Multispeciality Hospital Ltd. (CMMH) has announced significant changes to its board of directors, marking a substantial restructuring of the company's leadership.

New Appointments and Restructuring

The hospital's board has approved several key appointments, subject to shareholder approval at the upcoming 35th Annual General Meeting scheduled for September 30, 2025:

• Mrs. Shama Dhilip and Mr. K. M. Mohandass have been appointed as Additional Non-Executive Independent Directors for a five-year term, effective September 3, 2025.
• Mrs. Jayanthi Radhakrishnan has been appointed as Managing Director for a five-year term, without remuneration, also effective September 3, 2025.
• Mr. Edward M. Prabhakar and Mr. Akash Prabhakar are to be regularized as Directors.
• Mr. G. Ra. Gokul and Mr. K.P. Gautham Srinivas are to be appointed as Directors.

Family Ties and Corporate Governance

The appointments reveal significant family relationships within the company's leadership:

• Mrs. Jayanthi Radhakrishnan is the daughter of the current Managing Director, Mrs. R. Gomathi.
• Mr. G. Ra. Gokul is the son of Mrs. R. Gomathi and brother of Mrs. Jayanthi Radhakrishnan.
• Mr. K.P. Gautham Srinivas is the grandson of Mrs. R. Gomathi and nephew of Mrs. Jayanthi Radhakrishnan.

These family connections highlight the continued influence of the founding family in the company's management structure.

Shareholder Notices

The company has also received notices under Section 160 of the Companies Act, 2013, from two sets of shareholders, each holding over 10% of the company's equity:

1. Mr. G. Ra. Gokul and Mrs. Abhinaya Gokul, holding 10.06% of the share capital.
2. Mr. Gautham Srinivas and Mr. Aravind Srinivas, holding 10.88% of the share capital.

These shareholders have proposed the candidature of Mr. G. Ra. Gokul and Mr. K.P. Gautham Srinivas for directorship, respectively.

Implications for Corporate Governance

The restructuring of the board, with a mix of family members and independent directors, reflects CMMH's effort to balance family control with professional management. The appointment of independent directors may enhance oversight and bring fresh perspectives to the company's governance.

As these changes are subject to shareholder approval at the upcoming Annual General Meeting, investors and stakeholders will be watching closely to see how these appointments might influence the hospital's future direction and governance practices.

The restructuring comes at a time when healthcare companies are under increased scrutiny for their governance practices, making the balance between family management and independent oversight particularly crucial for CMMH's future operations and market perception.