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Tata Motors: Shareholders Approve Remuneration Proposal

Published on Wed, Jan 21,2015 | 20:06, Updated at Wed, Jan 21 at 20:06Source : 

Tata motors' shareholders have approved all five of the resolutions relating to remuneration that were put to them for vote.

These resolutions were defeated by shareholders when they were first put to vote in June 2014, through a postal ballot.

Tata Motors decided to approach the shareholders again, albeit with more information this time around. They also split the earlier three resolutions into five.

Tata Sons the promoters of the Company voted in favor of all the resolutions. As the resolutions dealt with executive remuneration of professionals, these did not fall under the section 188, which deals with ‘related party transactions’ and consequently Tata Sons had a vote.

The company did well to approach the shareholders. The first time the resolutions were defeated primarily on account of a large number of ADR holders taking a narrow interpretation of the rules governing the remuneration and consequently not supporting the resolution.

The investors seem to have realized that the two executive directors, are professionals, with significant experience in the automobile industry. Further that their proposed remuneration is in line with industry peers, and commensurate with the size and nature of a large and complex company like Tata Motors.

Attached is the alert by proxy advisory firm IiAS.

Attachments : Tata Motors Approve Remuneration Related Resolutions_21January2015.pdf

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