The senior nominated members of the Chennai-based TVS Group family members have on Wednesday decided to implement the memorandum of family members arrangement (MFA), by means of a composite scheme of amalgamation and arrangement to be filed with the National Company Law Tribunal, (NCLT) Chennai Bench.
The $8.5-billion, Chennai-based TVS Group had on December 10, 2020, embarked on a restructuring exercising whereby every family members group would get total ownership of the providers they handle and the holding business structure would be abolished.
The TVS family members has been engaged, for more than a century, in a diverse variety of organizations by means of numerous entities in which the branches of the TVS family members have invested in or by means of Television Sundram Iyengar & Sons, Sundaram Industries and Southern Roadways collectively known as as TVS holding providers. The MFA will include things like an amalgamation of T V Sundaram Iyengar & Sons, Sundaram Industries, Southern Roadways and TVS Sundaram Fasteners.
Under the new structure, even though every branch of the family members would turn into independent and handle the organizations they are operating, the terms of the family members arrangement do not envisage any royalty or brand usage payments from the operating organizations/providers to the TVS family members members/their holding providers.
The memorandum of family members arrangement (MFA) of December 10, 2020, had been executed amongst numerous members of the TVS family members who are shareholders of T V Sundaram Iyengar & Sons (TVSS), Sundaram Industries (SIPL) and Southern Roadways (SRW) — collectively referred to as the TVS holding providers.
Post the MFA, senior members of the TVS family members had been nominated to deliberate on the implementation of the family members arrangement. “On January 27, 2021, the senior nominated members of the TVS family have decided to implement the family arrangement, through a composite scheme of amalgamation and arrangement to be filed with the NCLT, Chennai bench involving the TVS holding companies and T S Rajam Distribution Services (TSRDSPL), Sundram Fasteners,” mentioned in a regulatory filing.
The present shareholders of the TVS holding providers mainly consist of the third and fourth generations of the founder, T V Sundaram Iyengar. The numerous providers/ organizations of the TVS Group have been traditionally managed by members of the distinct branches of the TVS family members. Over time, numerous members of the TVS family members felt that the ownership of shares in numerous providers/ organizations should really align and synchronise with the management of the respective providers/ organizations, as is at present becoming performed. The family members arrangement below the MFA is envisaged mainly to bring about amity and keep goodwill amongst the members of the TVS family members to preserve the memories of the founder Television Sundaram Iyengar, and to keep the general peace and harmony inside the TVS family members.