This is some next level fun going on in the Board.
There were 15 directors (max limit until amended through S.R. as per Companies Act) to start with for this micro cap company.
After 2 independent directors resigned, as per my knowledge, board meeting couldn’t happen Unless they restore the balance i.e. to appoint new Independent Director (time consuming considering result in this month) or non-Independent directors to resign.
So they decided that 5 Directors should resign.
Now the Board is of 8 members.
Moving forward, I guess they would try to restore it before AGM. This resignation is a non-event because these guys are the department heads and they will continue working. But no where apart from Holmarc you will see 5 directors resigning until the company is collapsing.
I was thinking that the sky had fallen on the company as I did not check how many directors they had to start with .I thought the entire board had resigned and was searching for company laws . Thanks for your post !
However, seriously , what made them have so many anyway ! Communism or what !
Sales didn,t pick up as expected, the inventory position has swelled up too since the comapny started manufacturing expensive equipments. Is there any hope of fast growth coming for it.
One of the positives mentioned above about the company is that all procurement was mandated through GeM.
According to a recent govt order, that is gone now :
We also have the increase in the limits of purchase amounts of instruments.
The above notification is expected to reduce delay in procurement.
Now coming to impact on Holmarc, I think it should be overall positive. Although competition might increase, but ease of ordering will mean if Holmarc is a trusted company, it will have faster closures of orders and reduction in inventory.
Let us see how it pans out.
Disc. : I have a small position. May build upon it depending upon how the next two quarters go.
