Proxy advisory firm IiAS has questioned Oil and Natural Gas Corporation Ltd. (ONGC) seeking exemption from taking shareholders’ nod for the acquisition of the government’s stake in Hindustan Petroleum Corporation (HPCL), saying such leniency with regard to public votes is not warranted.
ONGC bought the government’s 51.11% stake in Ltd. (HPCL) for ₹36,916 crore.
IiAS said Sec 188 of the Companies Act states ‘prior approval’ is required for firms to enter into RPTs (related party transactions). Where such approval was not taken, the Act allows for ratification till a period of three months.
