Former CAG Vinod Rai failed to find a place on the board of IDFC Ltd again. He was to be appointed as director by 22 May 2023. But the shareholders of the company rejected his nomination. The company’s shareholders voted 62.28 against Rai. Rai’s name was proposed for the post of Non-Executive and Non-Independent Director.
Not enough votes in favor of Rai
According to a Bloomberg news report, IDFC has said in a BSE filing that Rai did not get enough votes, so the simple resolution moved to include him as off director on the board could not be passed. Only 37.11 percent votes were cast in his favor. Whereas 50 percent of the votes are needed for the passing of the ordinary resolution. The shareholders approved the appointment of Jaimini Bhagwati and Anil Singhvi as independent directors.
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Company’s management on target of investors
The company’s management faced severe criticism from investors last week after IDFC Ltd’s AGM on September 22. The investor was extremely annoyed by the slow pace of disinvestment of the company’s assets. These also include the company’s investments in banks and mutual funds. Apart from this, no fixed period was given on the merger of some entities of IDFC Ltd. Even this angered the investors. At that time, as chairman, Rai told investors that the company had a very complex corporate structure. It has three companies. This includes a non-operating finance company, IDFC Projects and IDFC Foundation. Non-operating entities include several financial services businesses. These include banks and finance companies. According to the BSE filing, IDFC First Bank has IDFC Ltd. has a 36.5 percent stake.
Rai’s second term was to end on 30 July 2021. But he had resigned from the post of independent director. Later, he was appointed in the company as a non-executive and non-independent director with effect from 25 May 2021.