Shareholders Voting Against Several Resolutions Proposed By Managements

New Delhi
Shareholder meetings in the financial year 2022-23 saw a surge in advocacy by institutional shareholders who made their voices heard by voting against several resolutions proposed by managements. The number of resolutions where more than 20 per cent of institutional shareholders expressed their dissent increased by a huge 44 per cent to 1833 in 2022-23 in companies listed on NSE from 1256 in 2021-22 (and 636 in 2020-21), according to Primeinfobase, an initiative of Prime Database Group. According to Pranav Haldea, Managing Director, Prime Database Group, like in previous years, most of such resolutions related to board changes and remuneration, specifically ESOPs. According to Haldea, 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 codes 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. Resolutions where more than 20 per cent of Institutional Shareholders cast a negative vote, for companies belonging to Nifty 50 also increased by 35 per cent to 73 in number as compared to 54 last year. There were 102 resolutions which were completely voted against by shareholders at AGMs/EGMs/Postal Ballots and Court/NCLT Convened Meetings held in 2022-23, an increase of 42 per cent from 72 resolutions in the previous year and 48 resolutions in 2020-21.