India Proxy Season 2017 - InGovern

India Proxy Season 2017: InGovern

The India Proxy Season 2017 came to an end on September 30th. InGovern collated meeting details of 1,502 companies. I do very little to cover the India proxy season, so welcome this informative report from InGovern, India’s first independent corporate governance research and advisory firm.

Downloaded a pdf of the report, India Proxy Season 2017

India Proxy Season 2017 Statistics: Highlights

  • 8 Indian companies faced shareholder activism in 2017
  • Activism shifted from individuals to funds
  • Activism was carried out through multiple fronts: meetings, courts and the media
  • Investors have been taking more care in analyzing and voting proposals
  • 45 companies (84 resolutions) out of Top-100 had at least one AGM proposal that got more than 20% dissenting votes, nearly 10% of total resolutions proposed at these companies
  • Auditors are being rotated more frequently

India Proxy Season 2017: Statistics

  • A total of 10,972 resolutions were proposed at 1,502 companies
  • This included 9,889 resolutions through AGMs, with the remaining at other meeting formats
  • 8,291 resolutions were classified as ordinary resolutions while 2,681 were special resolutions
  • 9,601 resolutions were proposed by the management: 1,371 by shareholders
  • September was the busiest month with 5,811 resolutions
  • August (2,372 resolutions) and July (1,521 resolutions) were the 2nd and 3rd busiest months

India Proxy Season 2017: Conclusion

The trend is a proof that shareholders in India are slowly shedding their ‘passive investor’ tag and becoming more and more active in having a say on how the company should be run…

Anecdotal evidence suggests that shareholder activism makes companies more efficient and capital productivity becomes higher.

Increase in instances of shareholder activism is a clear indicator that shareholders are gradually seeing themselves as owners than as mere investors. This should act as a catalyst in improving the corporate governance culture, transparency in disclosures and level of engagement with stakeholders across companies in India.

Again, the full India Proxy Season report, prepared by InGovern, can be downloaded in pdf

  

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