Kolkata: The annual general meeting (AGM) of Birla Corporation, the flagship company of M P Birla, went off to a stormy start with co-chairman Rajendra S Lodha proposing a new chairman for the meeting.

Lodha, who is engaged in a bitter legal battle with the Birlas for control of the M P Birla group, proposed the name of a financial institute nominee as provisional chairman of the meeting to conduct the election of a new chairman.

As soon as the provisional chairman Dharmendra Bhandari ordered polling for a new chairman, pandemonium broke out as a large number of shareholders demanded business to be conducted under the chairmanship of Bhandari himself.

Earlier, Lodha arrived at the meeting venue in South Kolkata amidst heavy security and suggested that the meeting be held under a new chairman.

''I have been presiding over the AGMs of Birla Corp for the last few years but today I propose that a new chairman be elected and the poll may be conducted by a provisional chairman for which I propose the name of Dharmendra Bhandari," he said.

The Company Law Board (CLB) following a petition by more than hundred shareholders of the company had yesterday (Sep 14, 2004) declined to pass an injunction order on the meeting and had given a go-ahead for the AGM, including re-appointment of Lodha as a director through a secret ballot.

The CLB, however, had restrained the announcement of the result till its next hearing on November 22.