Nykaa's institutional investors against giving more rights to promoters

Nykaa has passed a resolution to amend its Articles of Association that allow promoters to nominate one-third of directors and the chairperson

Almost 80 per cent of institutional investors of e-commerce Nykaa, which include mutual funds, insurance companies and foreign portfolio investors, voted against a resolution of the board to amend its Articles of Association (AoA).

Regulatory filings showed that the two amendments – Article 114(a) and Article 134 – allow special rights to the promoters and their family trusts to nominate one-third of the directors on the board and also the chairperson.

However, the resolution was approved by the board as a cumulative of 94 per cent shareholders voted in favour. Apart from the promoter group, which has a 52.56 per