Minority investors show less dissent as cos hear them out
Shareholder resolutions with more than 20% dissent from institutional shareholders dropped to 16% in the recently concluded proxy season, down from 17% in the previous two fiscals, as per data from primeinfobase.com.
In actual numbers, 1,581 out of 10,092 resolutions saw more than 20% of institutional shareholders express their dissent in FY25 so far. However, 98% of them still passed, mostly owing to high promoter holding in the companies.
Even resolutions completely voted against by shareholders at shareholder meetings held in the first half of FY25 declined to 0.59% from 0.68% in the same period last year.
Historically, resolutions related to board appointments, excessive executive compensation, and misallocating company funds have often faced opposition from institutional investors. These money managers are signalling their disapproval by voting against such proposals in shareholder meetings.
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