IiAS calls for regulators to mandate majority-of-minority voting on promoter remuneration
Proxy advisory firms are calling on regulators to implement a majority-of-minority voting mechanism for approving promoter remuneration, citing a steady and significant rise in compensation paid to promoters and their families.
Voting data reveals how controlling shareholders have used their ownership to approve their own compensation.
A study by the Mumbai-based corporate advisory firm, Institutional Investor Advisory Services (IiAS), shows that out of 893 remuneration resolutions for promoters presented between 2023 and 2024, only 10 were rejected.
However, if these resolutions had been subjected to a majority-of-minority vote, an additional 216 resolutions—24.5% of the total—would have been rejected, showed the study.
Under the Companies Act, 2013, individual promoters can only receive compensation exceeding 5% of profits, or promoter groups exceeding 10% of profits, with shareholder approval. However, these regulatory thresholds often fail to impose effective limits on promoter compensation, said IiAS.
Stock Trading
Masterclass on Value Investing and Company Valuation
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time Options Trader
Stock Trading
Technical Analysis for Everyone — Technical Analysis Course
By — Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities
Stock Trading
Stock Markets Made Easy
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Renko Chart Patterns Made Easy
By — Kaushik Akiwatkar, Derivative
