Shareholders reject proposals Sobha shareholders vote against resolution for increased remuneration to Ravi Menon

The shareholders of Sobha Ltd have turned down two special resolutions proposed by the company. These resolutions aimed to increase the remuneration of non-executive directors and the chairman, Ravi PNC Menon. To be approved, each resolution needed at least 75% of votes in favour. However, less than 75% of the votes were in favour, and institutional shareholders voted overwhelmingly against the resolutions. Ravi PNC Menon, who is part of the promoter group, held a 3.36% stake at the end of December. Although he relinquished his executive role, he is still serving as the chairman. The company did not provide any response to the requests seeking clarification. The company argued that Menon’s remuneration was justified as he would continue to play a critical role in mentoring and guiding senior management in business strategy. Shareholders, particularly institutional investors, are increasingly rejecting resolutions that they feel do not serve the interests of all stakeholders. For example, shareholders of Max Financial Services and Dish TV rejected resolutions relating to remuneration and board appointments recently.