Construction Industry News
Shareholders of JK Lakshmi Cement Limited (JKLC) have rejected a proposal to increase the inter-corporate transaction limit to Rs 10,000 crore at the company's annual general meeting on August 24.
The special resolution seeking approval under Section 186 of the Companies Act, 2013, received only 71.10% of the vote in favor, which was less than the minimum 75% required to pass a special resolution.
Proxy consultancy IiAS had opposed the move, stating that the proposed limit was 277% higher than the current automatic limit of Rs 2,650 crore, of which JKLC has already used 91.7%.
While IiAS recognized the need for some increase, IiAS said the massive proposed increase warranted more disclosures from JKLC.
However, a separate special resolution for approval of Rs 2.50 crore committee to Chairman Bharat Hari Singhania for FY23 was passed by 85.29% vote, exceeding the legal requirement of more than 50% approval for payments of more than 50% of total remuneration to all non-executive directors.
JKLC, part of the JK Organisation group, had a turnover of Rs 6,071 crore in FY23. The rejection of the increase in the limit on transactions between companies indicates that shareholders want more clarity before approving such a substantial increase.
799
1499
3198
4569
245
299
205
0
759
999
