Over 90% shareholders voted to oust nusli wadia at tata steel egm

Over 90% shareholders voted to oust Nusli Wadia at Tata Steel EGM

Nusli Wadia was removed as independent director of Tata Steel on Wednesday with more than 90 per cent of the shareholders voting in favour of his ouster.

According to the companies statement, 56.79 crore votes out of a total of 62.55 crore votes were voted in favour of the removal of Mr. Wadia. In other words, 90.80 per cent shareholders supported the resolution. The balance 9.2 percent of the votes cast were in favour to retain him.

Although this motion was an ordinary resolution which required a simple majority, it crossed the hurdle of 75 per cent vote share required for special resolution.

Nearly 82.5 percent of the institutional shareholders voted him out while 84.47 percent of the retail shareholders also supported the resolution. Overall 64.4 percent of shareholders voted.

The votes classification is as follows:

Promoter and promoter companies have a total vote share of 30.45 crore. 29.59 crore of them voted. It means that votes polled by non promoter shareholders were 32.95 crore (62.54 crore-29.59 crore).

Interestingly votes polled by non promoter shareholders in favour of the resolution were 27.20 crores or 82.5 per cent. Whereas the total number of votes against the resolution were 5.75 crore.

In other words, even if the promoter votes were excluded, the voting result shows overwhelming majority (3/4th) in favour of the resolution.

When it comes to institutional voting, the shares held by institutional shareholders are 42.64 crore, of which 31.99 crores or 75 polled the vote. 26.39 crores or 82.5 per cent voted for Nusli Wadia's ouster while only 5.60 crores or 17.5 per cent voted against the motion.

Retail voting too showed the same pattern. 24.02 crore voted were held in retail category.

Only 0.96 crores or 4 per cent turned out to vote. Again, 0.81 crores or 84.4 per cent voted in favour of the motion while 0.15 crores or 15.6 voted against it.

This shows both institutional and retail voted in the similar pattern with significant majority well beyond the 3/4th majority mark in all categories.

Article By: - Business Standard.