Proxy Advisors against Saluja’s appointment again

Three leading proxy advisory firms have recommended voting against the proposal to re -appoint Rashmi Saluja as director in the board of Railways Enterprises citing corporate administration concerns.

Stakeholders Empowerment Services (SES), Institutional Investor Advisory Services (IIAS) and Ingwar Research have made their recommendations for voting on three proposals of the financial services firm. Voting will be held from Tuesday and the result is expected after an annual general meeting on Friday.

50 -year -old Saluja is to retire for rotation, provided he is not re -appointed to the upcoming AGM. The AGM was first to be held in December. But due to legal proceedings in the Madhya Pradesh High Court, it was delayed. However, later the application was rejected.

Saluja has also filed an application against the proposal in the Delhi High Court stating that he was appointed in 2023 for a five -year fixed period. The application has been opposed by four independent directors and the Burman Family and it is to be heard in the High Court this week.

The IIAS said that it is a member of the Audit Committee and Nomination and Relations Committee, which causes concern about the possible conflict of interests. The advisory firm said that various legal disputes and the cases filed with the police can be probably diverted on the board and the ability to fulfill their accountability. The IIAS said that we believe that the wrong advice of ESOPS approval and the lack of coordination with the largest shareholder is a cause of concern. We do not support this proposal.

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Citing issues of regulatory investigation, legal challenges and reliability, Ingwar has also recommended against his re -appointment. INGWAR said that the company’s more salary than equal assessed counterparts creates concern over governance and negatively impacts the company’s credibility.

Meanwhile, both the proxy advisory firm are in favor of two other proposals of the firm including adopting single financial statements and appointment of statutory auditor. The SES has recommended voting against adopting financial statements and said that the financial information of certain subsidiaries has not been disclosed on the website.

Gaikwad’s new application near SEBI

Prior to the open offer of Dabur promoter Burms, Railigare on Monday revealed that Danny Gaikwad applied to the market regulator SEBI for a competitive offer, seeking strict acquisition regulations for their proposed offer. The American investor has appointed PL Capital Markets as merchant bankers. The first letter of Gaikwad with a competing offer proposal was returned by the market regulator SEBI.

Florida entrepreneur has retaliated for a 55 per cent stake of REL at a price of Rs 275, which is 17 per cent higher than the Burman family’s offer of Rs 235. Railigare’s stock closed at Rs 238 with a decline of 0.25 per cent.

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