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Shareholder meetings in the financial year 2022-23 saw a surge in advocacy by institutional shareholders who made their voices heard by voting against several resolutions proposed by managements.
Institutional shareholders are increasingly voting against resolutions passed by company managements, indicating a growing trend among investors to make their voices heard. In FY23, over 20% of institutional shareholders opposed 1,833 resolutions, a 44% increase over the previous year. For Nifty50 companies, resolutions with over 20% dissenting votes increased by 35% YoY. The rise in advocacy is attributed to mandatory e-voting, stewardship codes, proxy firms, and increased institutional holding. Despite the dissent, the majority of resolutions still passed due to high promoter holding.
Like in previous years, most of such resolutions related to board changes and remuneration, specifically employee stock ownership plans (ESOPs).
Types: Most number of resolutions related to 'Board Changes' at 6,138. This was followed by resolutions relating to the auditors, remuneration and financial results.
MNDY earnings call for the period ending March 31, 2023.