Minority shareholders of Apollo Tyres have rejected the re-appointment of Neeraj Kanwar as the managing director, signaling a major defeat of the promoter at the hands of shareholders.
The development comes as some institutional investors are believed to have voted against Neeraj on the issue of high compensation. Kanwar took home an annual compensation of Rs. 42.8 Cr in 2017, almost a 43% hike of his take-home salary of Rs. 30 Cr in 2016.
The second largest tyre maker in the country informed exchanges on September 12 that 72.72 per cent of the shareholders voted in favour of the special resolution to appoint Kanwar while 27.28% voted against. The Companies Act specifies that votes cast in favour of a special resolution are required to be not less than three times the number of votes polled against it.
The company said in a statement, “Apollo Tyres’ board of directors will discuss the resolution in the next meeting and determine the course of action with respect to it. The company would like to reiterate that it is the vision and resolve of the company, and its senior leadership, to deliver value to all its stakeholders including employees, shareholders, customers, partners, and other relevant communities.”
Incidentally, Kanwar is also Vice-chairman of Apollo.
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