With governance in sharp focus at India Inc, coporate boards and top management may find it tougher to push their agenda if not aligned with wider interests of all shareholders. Empowered investors are increasingly voicing concerns on a spate of controversial issues, ranging from compensation appointments and related party transactions ending the era when AGMs were considered a regulatory tick box item. And most resolutions sailed through.
Recently Zee Entertainment has been making headlines due to its intense board room tussle with its institutional investors seeking the ouster of the company’s CEO and MD Punit Geonka. Similarly Vedanta and Lupin faced shareholders over the appointment of directors and grant of ESOPs.
Typically resolutions do not get the green light in 20-25 companies of BSE 500 every year. The figure is up this year with several prominent names industry watchers said.