BloombergQuint is tracking institutional investor votes this proxy seasonâespecially the proposals they vote against.
Majority of the institutional shareholders of at least three listed firms voted against board proposals in the week ended March 28, according to data compiled by Institutional Investor Advisory Services.
All institutional shareholders of Texmaco Rail & Engg. Ltd. voted against a plan to issue 2.8 crore equity shares of the company to a promoter firm Zuari Global Ltd. for Rs 90 crore, the proxy firm said. The proposal failed as 85% of the total votes cast went against it.
Institutions also shunned Texmaco's proposal for amending the articles of association of the company. While 77% of the institutional shareholders voted against the plan, it was passed with an 85% overall majority due to promoter support. The changes to the articles are not detailed in the EGM notice.
Besides Texmaco, there were two other firms where a majority of the institutional vote went against board proposals.
At Hindustan Media Ventures Ltd., over 90% of the institutional votes cast were against the remuneration proposal for managing directors Praveen Shomeshwar and Shamit Bhartia. However, just over a fifth of institutional investors voted and hence the proposal passed.
Institutional investors of La Opala RG Ltd. also voted against approving the remuneration proposed to be paid to Managing Director Ajit Jhunjhunwala, Wholetime Director Nidhi Jhunjhunwala and Executive Chairman Sushil Jhunjhunwala. Over 71% of the institutional shareholder votes cast were against the proposal. Yet, it passed with an 83% overall majority.
In the week ended March 21, almost half of the institutional shareholders of Sundaram Fasteners Ltd. rejected a proposal to reappoint Suresh Krishna as chairpersons and non-executive director, and Arathi Krishna as managing director for five years. While 40% of the institutional votes cast were against the proposals, they passed.
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