InGovern seeks deferment of two resolutions floated by Finolex Cables

Voting advisory firm InGovern has sought deferment of voting on two resolutions floated by Finolex Cables. These resolutions pertain to the re-appointment of Deepak Chhabria as executive chairman for five years (item no. 4) and payment of commission to non-executive directors (item no. 6).

Finolex Cables’ AGM is slated to be held on 29 September. The company issued an original notice to its shareholders on 4 September—25 days ahead of the AGM. However, it issued a corrigendum to the notice of the AGM on 16 September.

“Given that 13 days is a shorter notice for a significant addition in item 4 to the notice, many shareholders would not have got the time to study it. The law requires 21 clear days from the date of issue of the amended notice,” InGovern has said in a note.

“Considering the above legal requirements, the company should withdraw item no. 4 and no. 6 from the AGM on 29 September and defer these proposals, and represent the above changed proposals by giving a proper notice period and proper details,” it has said.

To be sure, rules allow amendments to the notice on a shorter notice period under certain conditions. InGovern, however, said that where e-voting is provided, any amendment can only be made by issuing a fresh notice at least 21 days in advance.

Out of the six resolutions floated by Finolex Cables, InGovern has recommended a ‘for’ vote on the other four.