46% of Apollo Tyres’ institutional shareholders oppose re-appointment

By: |
Updated: March 27, 2019 5:10:20 AM

While the majority of the institutional shareholders voted in favour of Pallavi Shroff's re-appointment as independent director, the vote against it at 46.40% is ‘unusual and high’,say experts

Apollo Tyres, Apollo Tyres shareholders, Apollo Tyres reappointment, Pallavi ShroffThe resolution was passed with 79.08% of the total votes in favour and 20.91% against the motion at the shareholders meeting on March 19.

Sanjeev Sharma

Over 46% of institutional shareholders voted against the special resolution for re-appointment of Pallavi Shroff, regional managing partner, Shardul Amarchand Mangaldas, as independent director on the board of directors of Apollo Tyres. The resolution was passed with 79.08% of the total votes in favour and 20.91% against the motion at the shareholders meeting on March 19. Seventy five per cent of the vote is required for a special resolution to pass.
In the public institution category of shareholders, which includes FIIs and DIIs, 53.59% voted in favour of the resolution to re-appoint Shroff as independent director for five years, while 46.40% voted against the motion.

While the majority of the institutional shareholders voted in favour of the motion, the vote against it at 46.40% is “unusual and high,” according to experts. Amit Tandon, founder & MD, Institutional Investor Advisory Services India (IiAS), a proxy advisory firm, said: “46.4% institutional shareholders voting against is both unusual and high. Having said so, we are now starting to see investors express their view through their vote rather than their feet”.
Tandon said that there are more than 150 resolutions in the last 18 odd months where 20% or more of the institutional investors have voted against.

Also read| Good news for startups! Flipkart’s corporate venture capital fund is here; check out sectors in focus

“Clearly, the expectations of shareholders have changed,” he added. Corporate governance experts point at a possible conflict of interest in Shroff’s appointment as an independent director at Apollo Tyres. Shriram Subramanian, founder & MD, InGovern, a corporate governance research firm, said: “We have always recommended voting against Pallavi Shroff as an independent director as there is a pecuniary relationship between the law firm and the company”.

Institutional shareholders in Apollo Tyres have a strong presence with around 44% holding, of which FIIs hold 20% and domestic institutions hold 24.3%.  When contacted, Apollo Tyres did not offer any comments.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Samsung Galaxy App store now available in 12 Indic languages under ‘Make for India’
2India becomes second largest market for Marks & Spencer after UK
3Rs 14,500 crore RTGS transfer: PFC to pay entire REC acquisition amount on Thursday