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Shareholders of Reliance Power (RPower) have turned down the company’s asset monetisation plan during its annual general meeting (AGM) held on Saturday.
Disclosing the results of the AGM on Monday, the company said 72 per cent shareholders had voted in favour of the special resolution to monetise its assets. The remaining 28 per cent had voted against the resolution.
Yet, the resolution did not get through because a special resolution requires 75 per cent of shareholders to vote in its favour, according to proxy advisory firms. A report by Institutional Investor Advisory Services (IiAS) last month said the company defaulted on loans to the tune of Rs 3,561 crore as on March 31, 2022.
This is the principal amount, the report said, with the interest working out to Rs 1,783 crore.
Lenders to Reliance Power include Axis Bank, YES Bank and State Bank of India, among others.
IiAS had also recommended that Reliance Power shareholders vote against adoption of the financial statements for the year ended March 31, 2022, citing auditors’ concerns. But that has not happened at the AGM.
The ordinary resolutions, which included adoption of the audited financial statements, have been cleared by the shareholders.
The appointment of a director in place of Sateesh Seth, a non-independent, non-executive director, and payment of remuneration to the cost auditors have also been cleared. Ordinary resolutions require 50 per cent of shareholders to vote in their favour.
Reliance Power received 72.74 per cent votes in favour of the first resolution to adopt the audited financial statements. It got over 99 per cent votes for the second and third resolutions.
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