Gold
JK Lakshmi shareholders reject raising transaction limit to Rs 10,000 crore
30 Aug 2023 CW Team
Shareholders of JK Lakshmi Cement Limited (JKLC) have rejected a proposal to raise the inter-corporate transaction limit to Rs 10,000 crore at the company's annual general meeting held on August 24.
The special resolution seeking approval under Section 186 of the Companies Act, 2013 received only 71.10% votes in favor, falling short of the minimum 75% required to pass a special resolution.
Proxy advisory firm IiAS had opposed the move, stating the proposed limit was 277% higher than the current automatic limit of Rs 2,650 crore, of which JKLC has already utilized 91.7%.
While acknowledging the need for some increase, IiAS said the massive proposed hike warranted more disclosures from JKLC.
However, a separate special resolution for approval of Rs 2.50 crore commission to Chairman Bharat Hari Singhania for FY23 was passed with 85.29% votes, crossing the regulatory requirement of over 50% approval for payments exceeding 50% of total remuneration to all non-executive directors.
JKLC, part of the JK Organisation group, had revenue of Rs 6,071 crore in FY23. The rejection of the inter-corporate transaction limit hike indicates shareholders want more clarity before approving such a substantial increase.
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