Votes by MFs against investor resolutions at 7-yr high of 4.53% in CY2021

In absolute terms, MFs cast 61,000 votes last year, 11% more than previous year; of these, 92% were 'For', with 2.91% abstentions, the lowest in past 7 years

Mutual funds (MFs) may still be hesitant to take on India Inc head-on but their share of votes against shareholder resolutions has seen an uptick in the last calendar year.

The percentage of ‘against’ votes rose to 4.53 per cent in 2021, the highest in the past seven years for which data was analysed. It was 2.87 per cent in 2020 and 4.18 per cent in 2019. In developed markets, institutional investors typically vote against 5-10 per cent of shareholder resolutions floated by companies.

In absolute terms, MFs cast 61,000 votes last year, 11 per cent higher than the previous