Mumbai: IDFC shareholders on Wednesday rejected the proposal to re-raise former Indian Supervisors and Auditors of India Vinod Rai as director.
Rai is also the Chair of the Non-Executive IdFC, the Firm Company of the First Bank of IDFC.
According to archiving, 62% of the votes were thrown at the Annual General Meeting against Item Number 5, the usual resolution to appoint RAI as a non-independent director until May 2023.
IDFC shares closed 2% higher at RS 56.
Shareholders, however, gave their nod At the resolution that approved the company’s financial statements and appointment of two other independent directors – Jaimini Bhagwati and Anil Singhvi.
IDFC has 45 lakh investors who hold 159 crore shares.
Of the 1,247 shareholders held 91 crore shares have chosen.
Foreign portfolio investors (FPIS) accommodate around 24% of IDFC shares.
The previous Rai was an independent IDFC director for two terms.
Because it is impossible to get the third term as an independent director, RAI has resigned before the second term can end in July.
However, he was reappointed as a non-executive director and the approval of the shareholders who were not asked to ratify the same thing.
In the pre-AGM investor call, shareholders questioned why the resignation of Rai has not been published.
Responding to the query, Ajay Sondhi, a director, has said that as the second term RAI as an independent director will end, the IDFC board and the Nomination & Remuneration Committee (NRC) feel that it is the best interests of the company and shareholders to ensure the continuity of the term of office of RAI as chairman Especially in the final phase of the critical IDFC in terms of opening the value of shareholders.
“Therefore, the council and NRC asked Rai to continue.
The exact technical process of the resignation of the RAI and the appointment is widely discussed and consulted with legal counsel and done fully in accordance with all existing regulations and the company’s governance process.
And finally, appointment.
Rai made by the Board, as chairman, as a non-executive director, “he said.
Management also faces flak without clarity about the divestment of a subsidiary and the possibility of incorporation of reversed with IdFC First Bank.
IDFC shareholders reject board chairs to Vinod Rai
