In another instance of shareholder activism, the public shareholders of industrial salt and soda ash manufacturer GHCL Ltd voted against the reappointment of Sanjay Dalmia as director of the company, causing the resolution to fail.
"In the democratic process which requires the resolution to obtain a minimum of 75% votes cast during the AGM in its favor, the resolution was able to secure 67.73% of votes. Thus the said resolution was not approved by the shareholders with the requisite majority," the company in an exchange filing on Sunday.
The resolution for reappointment of Sanjay Dalmia as a Director of GHCL, on a rotational basis, was presented in the company's 40th annual general meeting on Saturday.
Investor advisory firm Institutional Investor Advisory Services, or IiAS, recommended voting against the reappointment of Dalmia as Non-Executive Non-Independent Director. In a note, the advisory service had indicated that it found that corporate governance practiecs had room for improvement or were non-compliant with regulations or their intent.
As on March 31, institutional investors held 10.79% stake in the company .
Sanjay Dalmia has been a Director on the Board of GHCL since its inception in 1983 and was appointed as the Chairman of the Board in January 2005.
"In the board meeting held on April 29, 2023, he had expressed his desire to retire from the board due to his age and pursue his philanthropic interests. But, was compelled to accept the proposal of his reappointment due to the insistence of the Board members," the company said.
Shares of GHCL Ltd closed 1.8% higher to settle at Rs 514.9 apiece on the BSE on Friday as compared to over 1% rise in benchmark Sensex.
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