Sun fails to dislodge Taro directors at general body

Sun Pharmaceutical Industries Ltd, one of India's largest specialty drugs company, failed to unseat the existing directors of Israeli generic-drugs maker Taro Pharmaceutical Industries Ltd, although most minority shareholders of the Israeli firm voted against their re-election on Thursday.

Taro's chairman and key promoter Barrie Levitt and his slate of directors were saved by the one-third voting power the Levitt family has in the company.

At Taro's annual general meeting in Tel Aviv on Thursday, 78 per cent of minority shareholders, including Sun, which has a stake of around 36 per cent in Taro, voted against the re-election of the existing directors. They also managed to pass a resolution against the election of two external directors.

Since status quo has been maintained at Taro, Sun will still have to battle it out in the Israeli Supreme Court to take over the company.

Though failed in its attempt to dislodge the directors, Sun was buoyed by the stand of the minority shareholders.

"Taro's shareholders have spoken today, clearly and loudly. Taro equity shareholders holding more than two-thirds of its equity want to remove the Levitts and their associates from the board," said Dilip Shanghvi, chairman and managing director of Sun, in a statement.