India Inc's voting season

India Inc floated around 9,664 proposals for shareholder approval between January and September 2016. About 90 per cent of these were tabled during annual general meetings, while the remaining 10 per cent were tabled at extraordinary general meetings, postal ballots and court-convened meetings (CCM), data collated by proxy advisory firm InGovern show. Experts say shareholder meetings have now gained more significance, as resolutions are getting scrutinised by investors.

A slew of resolutions proposed by the top 100 companies were voted against by over 20 per cent voting institutional shareholders. The resolutions proposed by IDFC (pertaining to stock options) and Zee Entertainment (pertaining to creation of charges on assets) failed to pass with requisite majority. 

 

Shriram Subramanian, founder and MD of InGovern, says: “It is heartening to see that institutional investors are increasingly participating in shareholder meetings and voting aggressively. Some proposals by leading companies were voted out, and many others came close to being voted out.”

India Inc’s voting season