Reliance Chemotex Industries Limited has announced a significant change in its board composition. Nand Gopal Khaitan, a Non-Executive Non-Independent Director, has tendered his resignation from the company's board, effective October 10, 2025. This development comes amidst concerns raised by Khaitan regarding his classification as a promoter of the company.

Reasons for Resignation

In his resignation letter, Khaitan outlined several key points:

1. Misclassification as Promoter: Khaitan expressed surprise at being declared a promoter in the company's Prospectus, Annual Return, and other statutory documents.
2. Minimal Shareholding: He emphasized that he only held 100 shares in the company.
3. Lack of Control: Khaitan stated that he never had direct or indirect control over the company's affairs.
4. Professional Capacity: He clarified that his appointment as a Director was in his professional capacity as a lawyer and Senior Partner of Khaitan & Co, a reputable law firm in India.

Implications and Actions

The resignation of Nand Gopal Khaitan raises questions about corporate governance practices and the classification of directors in Indian companies. Here are the key takeaways:

1. Immediate Effect: Khaitan's resignation is effective immediately from October 10, 2025.
2. Share Divestment: He has indicated his intention to sell his 100 shares in the company.
3. Reclassification Request: Khaitan has requested the removal of his name as a promoter of the company.
4. Regulatory Compliance: The company is expected to file necessary forms with relevant authorities regarding this resignation.

Company's Response

Reliance Chemotex Industries Limited has acknowledged Khaitan's resignation in its regulatory filing. The company stated that it has received Khaitan's resignation letter and will take appropriate steps as required under the law.

This incident highlights the importance of accurate classification of directors and promoters in corporate structures, emphasizing the need for transparency and proper governance in listed entities.

Note: All dates mentioned in this article are based on the information provided in the regulatory filing.

Reliance Chemotex Industries Ltd. , a prominent player in the textile industry, successfully conducted its 47th Annual General Meeting (AGM) on September 26, 2025. The meeting, held through video conferencing, saw shareholders approving all business items on the agenda, marking significant developments for the company's leadership and governance structure.

Key Reappointments

The AGM resulted in several crucial reappointments:

1. Mr. Rahul Shroff was re-appointed as a Director liable to retire by rotation. An alumnus of the Massachusetts Institute of Technology (MIT), Mr. Shroff has been with the company since 2008. His expertise lies in streamlining manufacturing processes, with a focus on lean ideologies and analytical reasoning. He has been instrumental in diversifying the company's portfolio into industrial and medical textile markets.

2. Mr. Nand Khaitan was re-appointed as a Non-Executive & Non-Independent Director. With over four decades of experience in corporate law, commercial litigation, and arbitration, Mr. Khaitan brings valuable legal and governance expertise to the board.

3. Mr. Ameya Shroff secured a re-appointment as Whole-time Director designated as Executive Director for a three-year term from August 1, 2025, to July 31, 2028. Also an MIT graduate, Mr. Shroff joined the company in 2013 and has been pivotal in revamping the administrative framework and domestic marketing strategies.

Strategic Decisions and Governance

The AGM also saw the approval of several other important matters:

• The company declared a final dividend of ₹0.50 per equity share for the financial year ended March 31, 2025.
• Shareholders ratified the remuneration of M/s. N N & Associates as Cost Auditors for the financial year ending March 31, 2026.
• M/s. Bhandari & Associates, a prominent practicing company secretarial firm, was appointed as the Secretarial Auditors for a term of five consecutive financial years from 2025-26 to 2029-30.
• Approval was granted for the continuation of Mr. Nand Khaitan's directorship beyond his 75th birthday, which he will reach on May 21, 2026, highlighting the board's confidence in his ongoing contributions.

Leadership Continuity

The reappointments underscore Reliance Chemotex's commitment to leadership continuity and expertise. Both Mr. Rahul Shroff and Mr. Ameya Shroff, sons of Managing Director Mr. Sanjiv Shroff, represent the next generation of leadership within the company. Their reappointments signal a blend of family legacy and professional management, backed by their international education and proven track records in modernizing company operations.

Compliance and Transparency

In line with regulatory requirements, the company confirmed that none of the reappointed directors have been debarred from holding office by any SEBI order or other authorities. This affirmation reinforces Reliance Chemotex's commitment to corporate governance and regulatory compliance.

The AGM, which lasted from 11:30 AM to 11:52 AM (IST), was attended by 48 members. The company provided remote e-voting facilities and appointed M/s. Ronak Jhuthawat & Co. as the scrutinizer to ensure a fair and transparent voting process.

As Reliance Chemotex Industries Ltd. moves forward with its refreshed leadership team, the company appears well-positioned to continue its growth trajectory in the competitive textile industry, leveraging its strengths in manufacturing, innovation, and market diversification.