Amit Kalyani has been re-appointed to the board of pharmaceutical company Hikal, with shareholders overwhelmingly supporting his return at the company’s 37th annual general meeting on Tuesday.
The Hiremath family voted in favour of Kalyani’s re-appointment. Despite an ongoing family feud over the ownership of Hikal, Jai Hiremath and Sugandha Hiremath chose to prioritise board continuity and the company’s future, people in the know said.
Kalyani’s reappointment was supported by 99.59 % votes
Amit Kalyani, the son of Bharat Forge chairman and managing director Baba Kalyani, had sought re-appointment as a non-executive, non-independent director.
The resolution for his re-appointment received support from 257 members accounting for 99.59%, or 95,147,916, votes. Sixteen members cast votes against the re-appointment. The Hikal promoter group holds 68.85% of the company. Sugandha Hiremath and her family own approximately 35%, while Baba Kalyani and his family-controlled companies own 34%. Public holdings in Hikal account for 31.15%, with institutional investors holding 21.19% and individual investors holding 16.57%.
Dispute over the control of Hikal
Baba Kalyani and Sugandha Hiremath are currently embroiled in a dispute over the control of Hikal. Baba Kalyani was ousted from the Hikal board last year.
Sugandha Hiremath’s son, Sameer Hiremath, serves as the vice chairman and managing director of Hikal. Amit Kalyani has been a non-executive Director of Hikal since 2012, but he is not involved in the daily operations of the company.
Proxy advisory firms Institutional Investor Advisory Services (IIAS) and Stakeholder Empowerment Services (SES) have provided conflicting recommendations regarding Amit Kalyani’s re-appointment. IIAS recommended that shareholders vote against his re-appointment, while SES advised support for the resolution.