Britannia shareholders reject Rs 5,000 cr investment proposal

However, it received 100 per cent support from the promoter and promoter group.The two other special resolutions -- approval of remuneration to its Chairman Nusli N Wadia and the re-appointment of Keki Elavia as an Independent Director -- were passed.However, 59.31 per cent of public institutions and 59.90 per cent of Public non-institutions voted against the proposal to hike the remuneration to the Britannia Chairman.

Britannia Industries' shareholders have voted against a resolution to authorize the board to make investments, give loans and provide guarantees of up to Rs 5,000 crore in the AGM concluded last week.

The special resolution for approval to increase limits for making investments, loans, Special guarantees, and security were ''not Passed with requisite majority,'' said a regulatory filing from Britannia Industries on June 29, 2022.

The Companies Act mandates that a special resolution needs to be passed by a super majority, which refers to at least 75 percent of the members voting in favor of it.

It received only 73.35 percent of the total 19.60 crore votes polled, while 26.64 percent of votes were against the proposal. In the AGM, 71.13 percent of public institutions and 70.86 percent non-Public institutions voted against the proposal for making investments, loans, Special guarantees, and security of up to Rs 5,000 crore. However, it received 100 percent support from the promoter and promoter group.

The two other special resolutions -- approval of remuneration to its Chairman Nusli N Wadia and the re-appointment of Keki Elavia as an Independent Director -- were passed.

However, 59.31 percent of public institutions and 59.90 percent of Public non-institutions voted against the proposal to hike the remuneration to the Britannia Chairman. It was passed with 76.94 percent of the total votes polled with the help of promoters and some other investors.

Remuneration of Rs 7.33 crore to Wadia was more than 50 percent of the total annual remuneration payable to all non-executive directors for 2021-22. Shareholders also passed three ordinary resolutions with the requisite majority, including appointing a director in place of Ness N Wadia, who retires by rotation.

Britannia, which is expanding its manufacturing facilities -- has sought shareholder's approval of limits for making investments, loans, guarantees, and security up to an amount not exceeding Rs 5,000 crore.

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