Institutional investors favour 13 resolutions, dissent against one since Oct 16

October 26, 2021 1:15 AM

The pharma company’s resolution to appoint Rajender Juvvadi Rao as executive director and vice chairperson for three years from August 25, 2021, and fix his remuneration was voted against with 50.88% of the total institutional investors’ votes. However, the resolution was approved.

For the previous week ended October 15, institutional investors had greenlighted all 10 resolutions, in sharp contrast to the week ended October 8, when three resolutions were rejected by institutional investors.

By Rajesh Kurup

Institutional investors favoured 13 resolutions since October 16, including one of Reliance Industries (RIL), with a majority of more than 75% of the votes cast. According to data compiled by proxy advisory firm Institutional Investor Advisory Services India (IiAS), of the total 14 resolutions that came up for voting during the seven-day period, a resolution of Solara Active Pharma Sciences was the only one with more than 50% investor dissent.

The pharma company’s resolution to appoint Rajender Juvvadi Rao as executive director and vice chairperson for three years from August 25, 2021, and fix his remuneration was voted against with 50.88% of the total institutional investors’ votes. However, the resolution was approved.

Five other resolutions of Solara — including for the appointment of directors and raising borrowing limits to `1,750 crore from `1,000 crore — were favoured with more than 85% of the votes. During the week under review, RIL’s resolution to appoint Aramco chairman Yasir Othman H. Al Rumayyan as an independent director for three years from July 19, 2021, was approved with 94.90% of votes.

The resolution was closely watched by investors as a US-based influential pension fund, California State Teachers Retirement Fund, had said it would vote against it. The fund had not provided any reasons for its dissent. Earlier, global proxy advisory firm Glass, Lewis & Co had raised concerns regarding Al-Rumayyan’s appointment, citing governance issues.

During the week ended October 23, resolutions of Sundram Fasteners (appointment of independent director), Saregama India (`750 crore fund raising) and Motilal Oswal Financial Services (appointment of auditors) were approved by a whopping 100% of votes.

While Route Mobile’s resolution to raise the investment limit of foreign portfolio investors’ to 100% from 49% of paid-up share capital was supported by all votes, its resolution to issue securities of up to `2,000 crore was approved with 75.55% of votes cast.

The resolution of Gillette India to appoint an executive director also received a thumbs up with 92.12% of votes. All 14 resolutions that were reviewed during the week were approved, IiAS said.

For the previous week ended October 15, institutional investors had greenlighted all 10 resolutions, in sharp contrast to the week ended October 8, when three resolutions were rejected by institutional investors.

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