Shareholders Activism in Religare reflected on rejection of Management’s proposals
Shareholders of Religare Enterprises have rejected two resolutions proposed by the company, amid an ongoing tussle between chairperson Rashmi Saluja and largest shareholder — the Burman family.
The two special resolutions — one seeking an approval to invest up to Rs. 15 crore in MIC Insurance Web Aggregator, and the other to amend the Articles of Association (AoA) —required at least 75% of votes in favour.
As per market experts, the decision by shareholders is significant given that the Burmans have announced an open offer to acquire an additional 26% of Religare's equity, a move opposed by the company's management. Currently, Religare does not have founder shareholders and is owned by the public.
However, according to the scrutiniser’s report, the two special resolutions were opposed with 74% and 32% votes.
Proxy advisory firms had also advised shareholders to vote against the proposal of investment in MIC Insurance due to lack of information regarding the financials and the valuation of MIC.
