2018 saw greater advocacy by institutional shareholders: Report

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Mumbai | Published: February 15, 2019 2:48:26 AM

Resolutions which were not favoured by more than 20% of institutional shareholders increased by 14% to 716 in 2018 compared to 629 in 2017, as per nseinfobase.com, developed and compiled by Prime Database.

nclt, mutual fundsThere were 45 resolutions which were completely voted against by shareholders at annual general meetings, extraordinary general meetings, postal ballots and court or National Company Law Tribunal convened meetings held in 2018.

Resolutions which were not favoured by more than 20% of institutional shareholders increased by 14% to 716 in 2018 compared to 629 in 2017, as per nseinfobase.com, developed and compiled by Prime Database. Shareholder meetings in 2018 saw a high level of participation by institutional investors who made their voices heard by voting against resolutions.

However, around 98% of proposals put up before the company boards were approved in 2018 owing to high promoter holding, despite a greater level of institutional investors casting their vote against the decision. Resolutions related to board appointments were followed by stock options and board remuneration. Pranav Haldea, MD, Prime Database, attributes facility of e-voting and the stewardship code brought about by regulators. A ‘stewardship code’ is a principles-based framework that is designed to assist institutional investors and their stewardship service providers (including proxy advisors) in fulfilling their responsibilities to their clients. “It is also attributable to a greater role being played by proxy firms,” adds Haldea.

There were 45 resolutions which were completely voted against by shareholders at annual general meetings, extraordinary general meetings, postal ballots and court or National Company Law Tribunal convened meetings held in 2018. Domestic MFs voted in favour in 84% of the cases, against in 3% of the cases and abstained in a high 13% cases. In 2018, a total of 12,972 resolutions were proposed to be passed in 2,478 AGMs, EGMs, Postal Ballots and Court/NCLT Convened Meetings of 1,744 companies which were listed on National Stock Exchange (NSE) as on January 1, 2018.

NSE Infobase is a joint initiative of NSE and Prime Database to provide value added corporate data on insider trading, share pledging, transactions under takeover code, shareholding, board of directors, postal ballot resolutions, board meeting resolutions, investor meets, among others.

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