IANS | 29 Jun, 2023
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.
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
to Pranav Haldea, Managing Director, Prime Database Group, like in
previous years, most of such resolutions related to board changes and
remuneration, specifically ESOPs.
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.
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.
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.
these 102 resolutions, 21 were re-proposed to be passed, out of which
18 resolutions eventually passed while three of them failed again.
many as 1,005 resolutions pertaining to related party transactions
(RPTs) were proposed in 2022-23, more than double of the 474 such
resolutions in 2021-22. While 102 or 10.15 per cent of these resolutions
were voted against by more than 20 per cent of institutional investors,
just 16 or 1.59 per cent of such resolutions were defeated.