Proxy advisory firm Institutional Investor Advisory Services India (IIAS) has welcomed Maruti’s decision to put the decision around the controversial Gujarat plant to shareholders’ vote.
“By putting the decision on the Gujarat plant to vote, the Maruti board has broken through the current regulatory ambiguity and proactively mitigated the need for regulatory intervention,” the IIAS said in a statement here on Saturday. “Maruti will seek the approval of minority shareholders as stipulated in Section 188 of the new Companies Act. We welcome this decision as we believe this gives shareholders a chance to have their say,” it added in the statement.
For the company to go ahead with Gujarat plant plan, it has to secure three-fourth votes of the minority shareholders or 32.8 percent (of the 43.79 per cent).
