Adani-owned cement giants ACC and Ambuja Cements faced resistance from institutional shareholders as they voted against adopting the audited financial statements for 2022-23. The concerns raised by auditors were taken into account, leading to this decision, as reported by the Economic Times.
Despite the majority of institutional shareholders voting against adopting financial statements, the resolution was still passed by both companies. The support came from the promoters, who hold significant shares in these firms.
At ACC, about 63 per cent of votes from public institutions were against the resolution, while 37 per cent voted in favor. Similarly, at Ambuja Cements, nearly 54 per cent of votes from public institutions did not favor adopting the financial results, with 46 per cent in favor. It's important to note that not all public institutions participated in the voting process.
The participation of public institutions in casting their votes was relatively low, with only 60.2 per cent at ACC and a little over 58 per cent at Ambuja Cements.
However, the promoters fully supported the financial statements and voted in favor of them.
Independent advisory firm Institutional Investor Advisory Services (IiAS) advised investors to vote against the financial statements for ACC, but suggested proceeding with other resolutions, including the dividend and remuneration to cost auditors.
The voting outcome highlights the significance of institutional shareholder participation in crucial decisions like adopting audited financial statements for companies like ACC and Ambuja Cements.