Jet Airways shareholders reject FY19 and FY20 accounts ahead of NCLT ruling

Institutional investors lead rejection brigade as Naresh Goyal abstains; proposal to appoint Sharp and Tannan as statutory auditors approved

Shareholders of Jet Airways have rejected the company’s FY19 and FY20 financial accounts.

The airline founded by Naresh Goyal suspended operations in April 2019 and has been under insolvency for nearly two years. The National Company Law Tribunal is expected to pass its judgment soon on a proposal to revive the airline.

But ahead of the NCLT verdict, the airline’s shareholders voted against resolutions to approve audited accounts at the annual general meeting on Tuesday.

The financial accounts for year ending March 2019 were finalised last July and those of year ending March 2020 were finalised in February.

The audited accounts of both the years were put up for shareholder adoption at the annual general meeting this week.

While Goyal abstained from voting, nearly 95 per cent of the shareholders rejected the resolutions to adopt the financial

statements of the two years. Institutional shareholders overwhelmingly voted against the proposals.

The proposal to appoint Sharp and Tannan as statutory auditors of the company was approved.

In FY19 Jet Airways posted a loss of Rs 5,539 crore, it made a loss of Rs 2,841 crore for the subsequent year.

Under the present shareholding structure, Goyal owns 51 per cent shares. Etihad Airways has 24 per cent and the remainder is held by institutional and ordinary public shareholders.

The Kalrock-Jalan consortium in its revival plan has proposed a change in shareholding structure which will see them holding nearly 90 per cent of the shares in the airline. Banks will hold over 9 per cent shares and public shareholding will reduce to less than one per cent.