Institutional investors have rejected two resolutions, including that of IDFC, and voted against another two with a whopping 98% majority since September 17, said IiAS.
The resolution of IDFC seeking appointment of Vinod Rai as non-independent, non-executive director for two years was rejected with 58.2% of institutional investors’ votes, according to data compiled by proxy advisory firm Institutional Investor Advisory Services India (IiAS). Honda India Power Products’ resolution seeking related-party transactions with group companies was also rejected with 71.7% of votes.
Bliss GVS Pharma’s resolution to appoint Gagan Harsh Sharma as MD was voted against by 99.8% of the total votes. Sanghi Industries’ resolution to appoint Dabbir Badri Narayan Rao as an independent director was also voted against with 98.3% of total institutional shareholders’ votes cast.
Gati’s adoption of financial statements for fiscal ended March 31, 2021, resolutions to appoint directors by Triveni Engineering & Industries, West Coast Paper Mills and Motherson Sumi Systems, among others, were also not favoured by majority of institutional investors. Institutional investors in Indian companies include banks, mutual funds and large corporates. Of the total 291 resolutions reviewed by IiAS, the outcome of one was not known. While 11 were approved, voting data was not immediately available, it said. Of the remaining 279 resolutions, 18 resolutions were voted against with more than 50% of the institutional shareholders’ votes, but were approved based on shareholding pattern.
Five resolutions of food-delivery app Zomato, which became the country’s first unicorn to make a stock market debut, were given a “thumbs down” by majority of institutional shareholders. However, the unicorn’s move to ratify an employee stock option plan received more than 50% of the votes polled. The institutional investors had voted in favour with 90% of their total holding in 173 resolutions and with 100% in favour of 139 resolutions, the data showed.
Among the resolutions that were in favour with institutional investors casting more than 50% of their votes included Muthoot Finance’s approval of revision in remuneration for whole time director Alexander George, Jubilant Pharma’s appointment of Arvind Chokhany as director and IDFC’s appointment of Jaimini Bhagwati as independent director.