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Institutional investors voted against 45 resolutions in 2018

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NEW DELHI: As many as 45 resolutions were completely voted against by shareholders at board meetings in 2018 against 24 in 2017 and 28 in 2016, data available with PRIME database suggests.

Of these 45 resolutions, five were re-proposed to be passed, which eventually got passed.

In 716 cases, where more than 20 per cent of institutional shareholders voted against the resolution, 700 eventually sailed through, largely due to higher promoter stake in most of the companies.

There were 629 case in 2016 where more than 20 per cent of institutions objected to the proposal; in 2016 the number was 2016.

“This reflects an increase in advocacy on the part of institutional investors, which is on account of the facility of e-voting being made mandatory a few years back as also the stewardship code brought about by regulators. It is also attributable to a greater role being played by proxy firms as also a steady increase in institutional holding as a whole,” said Pranav Haldea, Managing Director at PRIME Database Group.

Out of 716 resolutions, 98 per cent or 700 managed to sail through, largely due to high promoter holding in the companies. Domestic Mutual Funds, as a whole, voted in favour in 84 per cent of the cases, against in 3 per cent of the cases and abstained in a high 13 per cent cases.

For the year, a total of 12,972 resolutions were proposed to be passed in 2,478 AGMs, EGMs, postal ballots and NCLT/courts of 1,744 companies. This excludes companies which have been suspended or delisted subsequently, up from 12,341 resolutions in 2017, a rise of 5 per cent.

Source: Economic Times