Basant Kumar Birla has offered to get himself reappointed to the boards of at least three group companies, Century Textile, Century Enka and Jay Shree Tea. Earlier the market was abuzz with the impending retirement of the nonagenarian. It was believed his grandson Kumar Mangalam Birla would formally take over a major part of the empire.

This rumor even led to rallies in shares of the Century Textile and Industries, which appreciated 60 per cent from February end to middle of April. But with B K Birla deciding to celebrate his 95th birthday as an active industrialist, this has created a situation in Century Textile, where three generation of the family, KM Birla, his mother Rajashree Birla and grandfather BK Birla are serving on its board.

There is a positive aspect of the promoter family hogging the board as it leads to faster decision making. But there is also the issue of corporate governance as the new generation owner members would be in two minds taking any decision that would upset the senior members of the family present in the board. There is also a view that with BK Birla touching 95 years, his presence would be inconsequential to the overall operation and decision making of the board.