Parekh re-appointed as director even as 22.64% HDFC shareholders voted against

Financial sector doyen Deepak Parekh was re-appointed as non-executive director on the Board of country's largest mortgage lender HDFC, though 22.64 per cent of the shareholders voted against his continuation.

HDFC Chairman Parekh secured approval of 77.36 per cent shareholders at the annual general meeting (AGM) of the company held here yesterday.

Parekh has been at the helm of HDFC for close to 30 years.

J J Irani and Keki Mistry too got re-appointment as directors to HDFC's board with more favourable votes.

As per the Companies Act, the votes cast in favour of a special resolution are required to be not less than three times the number of the votes, if any, cast against the resolution.

HDFC had to come out with special resolution for re-appointment of its Parekh as he would cross the age of 75-year on October 18 next year.

The company had sought shareholders approval for continuation of directorship of Parekh.

The AGM also approved continuation of directorship of J J Irani.

The mortgage lender had sought approval for continuation of directorship of Irani who has attained the age of 75 years, up to the expiry of his present term as an Independent Director (July 20,2019). As many as 94.58 per cent shareholders voted in favour of Irani.

The HDFC shareholders also approved re-appointment of Keki Mistry as the Managing Director (designated as Vice Chairman and Chief Executive Officer) for a period of three years.

Mistry got 99.51 per cent votes of shareholders. His re-appointment was through an ordinary resolution.

Upendra Kumar Sinha and Jalaj Ashwin Dani have been appointed as Independent Directors at the AGM.

HDFC has reported a 54 per cent increase in standalone net profit at Rs 2,190 crore in the June quarter, helped by the Rs 511 crore dividend it received from HDFC Bank and better asset quality.

Company's shares closed at at Rs 1,994.75, down 1.64 per cent on BSE.