Study the following case carefully and answer the question that follows:
Suresh started a business from scratch, and ended up as the substantial owner of a mid-sized engineering company. The position of Technical Director in the company fell vacant when its incumbent resigned to take up another assignment. To the surprise of the board, Suresh proposed that his young son Ramlal should be made Technical Director. One director openly expressed his opposition to the proposal and doubted Ramlal’s credentials. Suresh replied that his son had studied engineering in Remote Westbrook Technical University, an accredited university in New Mexico, and had also taken training in some workshops near Detroit. When there was further opposition, Suresh pleaded that his health was poor and that he would like someone from his family to take the reins if he were to become too ill. Ramlal, he added, would be elected a member on the strength of his shareholding.
Question: Assume that you have been the secretary of the company for many years and have the ears of Suresh. What would be your advice to Suresh?
1. You would advise Suresh that such opposition from independent directors is routine in corporate life. Suresh should not change his position.
2. Your advice would be that Ramlal should start at the shop-floor level and then gradually take up higher responsibility.
3. The company should appoint an elderly technocrat with management experience who is nearing retirement, with the specific mission to groom Ramlal.
4. You should stay away because in family matters people do not pay heed to reason.