Board proposals face shareholder pushback

Proxy advisory firm Institutional Investor Advisory Services (IIAS) said in a report on Monday that multiple voting results over the past week reflect institutional investors’ decisions on dozens of board proposals. The IIAS said it had sent voting recommendations for 25 proposals during the past week, and “all of them were approved”.

Some of the proposals faced stiff opposition from institutional investors, indicating their dissatisfaction over some of the key appointments and financial decisions taken by company boards.

The average percentage of voting by shareholders was 74.91% for the previous week, with one resolution having more than 75% institutional investors voting in favor, and 11 resolutions having 100% institutional investors voting in favor.

For example, 70.05% institutional investors voted against the proposal to appoint Anuj Singh as the Managing Director and CEO of Spencer’s Retail Ltd. In 35 cities, engaged in FMCG, fashion, food and others.

Listed entities file voting data with the stock exchanges within two working days from the conclusion of the board meeting. This data is filed under three categories of shareholders- promoters, institutional investors and others.

In Gujarat State Fertilizers and Chemicals Limited (GSFC), the board faced significant resistance from institutional investors, with 76.78% voting against a proposal to appoint Raj Kumar as the company’s chairman and non-executive non-independent director. Happened. GSFC comes under the Ministry of Chemicals and Petro-Chemicals, Government of Gujarat, with Gujarat State Investments holding 21.38% stake in the company.

In Lumax Auto Technologies Limited too, the board faced opposition, with 58.83% institutional investors voting against the proposal aimed at increasing the borrowing limit. 500 crores in addition to the paid-up share capital of the company. The company Lumax-a part of the DK Jain Group, manufactures automotive components.

Also, 50.16% institutional investors in Indiabulls Real Estate Ltd voted against the proposal to appoint Sachin Shah as executive director for a five-year term. Indiabulls Real Estate has 15 ongoing projects with a total salable area of ​​33.91 million sq ft. It has a commercial development arm with a leasable area of ​​3.15 million sq ft. under construction.

IiAS note that in Aegis Logistics Ltd, 49.96% institutional investors voted against the proposal to reappoint Raj Chandaria as Managing Director for five years. The company is an integrated oil, gas and chemical logistics firm and is one of India’s top importers and handlers of LPG among private players.

In platform and content provider firm MPS Ltd, 37.06% institutional investors voted against the proposal to reappoint Rahul Arora as CEO and Managing Director for five years. MPS, established in 1970 as an Indian subsidiary of Macmillan (Holdings) Limited, is a provider of platforms and learning solutions for the digital world.