American burger chain McDonald's had told the Company Law Board it decided not to extend the term of Vikram Bakshi's term as the local unit's managing director. The decision was reached after the company deemed that he was not putting enought time for the business.
According to the McDonald's statement, "Bakshi has not been able to devote substantial time in the development and performance of the business due to his association with 25 other companies promoted by him and his family."
Bakshi had approached the board after he was removed as Connaught Plaza Restaurants. Connaught was the joint venture company operating McDonald's outlets located in northern and eastern India last August 6.
McDonald's signed a 25 year joint venture with Bakshi and Amit Jatia, the Indian partner for the western and southern parts of India. This agreement was modified in May 2010 when McDonald's decided to sell its shares in the Jatia venture in favor of its Indian partner.
The change was brought about by the allegation that Bakshi used his shares in Connaught with financial institutions in order to raise funds for his other business interests.
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