NEW DELHI: Eicher Motors' shareholders in its recently held annual general meeting (AGM) have rejected a proposal for re-appointment of Siddhartha Lal as the company's managing director for a period of five years with effect from May 1 this year.
During the company's 39th AGM, which was held earlier this week, the members also rejected the proposal of increasing Lal's remuneration. While 73 per cent of the votes favoured the re-appointment, the rest 27 per cent were against it.
As a special resolution, it needed support from 75 per cent of the votes cast to pass the proposal. Out of the total 21,74,67,139 votes, 15,88,49,543 (73.04 per cent) were in favour of the re-appointment, while 5,86,17,596 (26.95 per cent) votes disapproved the proposal.
The company's public institutional shareholders particularly opposed the move. Out of the total 8,13,98,998 votes received in the category, 5,86,16,986 (72 per cent) disapproved the proposal and just 2,27,82,012 (27.98 pet cent) favoured the move. "The resolution was not passed with requisite majority," Eicher Motors said in a regulatory filing.
Meanwhile, an ordinary resolution seeking Lal's re-appointment as a director on the company's board was approved by shareholders. Around 86 per cent of the votes were in the favour of the proposal. Royal Enfield, a part of Eicher Motors, is a leading player in the mid-sized motorcycle segment with presence across domestic as well as international markets.
In addition to motorcycles, Eicher motors has a joint venture with Sweden's AB Volvo VE Commercial Vehicles Limited (VECV).