PVR Limited's shareholders dismiss special incentive resolution for Chairman -; Joint MD

25 Jul 2022 , 09:24 AM

PVR Limited’s shareholders rejected two resolutions last week seeking approval for special incentives for its chairman and managing director Ajay Bijli and joint managing director Sanjeev Kumar for FY22.

The company sought approval from shareholders to pay a special incentive of Rs6 crore to Bijli and Rs4 crore to Kumar. This is in addition to Bijli’s fixed pay of Rs6.42 crore and Kumar’s fixed pay of Rs4.43 crore for FY22.

Around 52% of institutional investors and 25% of non-institutional public investors voted against PVR’s two senior executives receiving special incentives. The resolution received approximately 64% shareholders’ votes in favour.

As per the Companies Act 2013, a special resolution must receive approval from shareholders who own at least 75% of the total equity.

Bijli including other promoters, who owned 16.99% of the company as of June 30, voted in favour of the proposals. As of June 30, foreign and domestic institutional investors held 36.56% and 26.19% stake in the company, respectively, while retail investors owned 20.26%.

SES raises severe concerns on the Nomination and Remuneration Committee of the company as on the one hand company is looking to compensate the executive director’s performance by incentive pay. At the same time, it has made no such plan for the employees of the company despite consistent pay cuts during the last two years.

At around 9.27 AM, PVR Ltd was trading at Rs1,956.25 up by Rs16.35 or 0.84% from its previous closing of Rs1,939.90 on the BSE. The scrip opened at Rs1,939.90 and has touched intraday high and low of Rs1,958 and Rs1,920 respectively.