An anonymous shareholder had proposed appointment of ratings firm ICRA's statutory auditor BSR & Co last year. ICRA had initially proposed reappointment of its old auditor in the last annual general meeting (AGM), but changed its decision after this shareholder moved the proposal.
One year later, a proxy firm has dug out the circumstances of the appointment and has raised concerns when the company is seeking reappointment of the audit firm. Shareholders will vote on the proposal at the ICRA AGM on Thursday.
In May 2014, the original resolution of ICRA sought reappointment of Vipin Aggarwal & Associates. In June that year, New York-based ratings giant Moody’s Corporation raised its stake above 50 per cent. Subsequently, a few days before the AGM, a special notice was given for a resolution by “a member” proposing to appoint BSR & Co in stead of Vipin Aggarwal & Co.
Under normal circumstances, proposals made by individual shareholders do not get passed. These get passed only when supported by the controlling shareholders. Proxy firm Stakeholders’ Empowerment Services (SES) sees some connection between the Moody’s takeover and the shareholder-sponsored resolution.
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