Eicher Motor shareholders have approved a proposal to re-appoint Siddhartha Lal as the company’s managing director for a period of five years with effect from May 1 this year. The members also cleared the proposal to increase Lal’s remuneration.
In the latest round of voting, 93.75 per cent votes favoured the re-appointment, while 6.25 per cent votes opposed the proposal.
“The resolution was passed with requisite majority,” Eicher Motors said in a regulatory filing.
Similarly, 98.56 per cent of the votes favoured an increase in Lal’s remuneration while 1.44 per cent votes went against the proposal.
The agenda was cleared by the shareholders under the ‘ordinary resolution’ mechanism.
In August, Eicher Motors’ shareholders had rejected a proposal for re-appointment of Lal as the company’s managing director for a period of five years with effect from May 1 this year.
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During the company’s 39th AGM, which was held in August, the members had also rejected the proposal of increasing Lal’s remuneration.
While 73 per cent of the votes had 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.
The company’s public institutional shareholders had 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.
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).
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