Leading automobile manufacturer Eicher Motors is set to re-appoint Siddhartha Lal as the company’s managing director for a period of five years with effect from May 1 this year.
The auto company has announced to have ratified the appointment of Lal from the company shareholders. The members also cleared the proposal to increase Lal’s remuneration.
According to the company, in the latest round of voting, 93.75% of votes favoured the re-appointment, while 6.25% of votes opposed the proposal. “The resolution was passed with requisite majority,” Eicher Motors said in a regulatory filing.
Similarly, 98.56 per cent of the votes favoured an increase in Lal’s remuneration while 1.44% of votes went against the proposal. The agenda of the meeting was also cleared by the shareholders under the ‘ordinary resolution’ mechanism.
Royal Enfield, a part of Eicher Motors, is a leading player in the mid-sized motorcycle segment with a presence across domestic as well as international markets. In addition to motorcycles, Eicher Motors has a joint venture with Sweden’s AB Volvo – VE Commercial Vehicles Limited (VECV).
Earlier in August, Eicher Motors’ shareholders had rejected a proposal for the re-appointment of Lal as the company’s managing director for a period of five years with effect from May 1 this year.
During the company’s 39th AGM, which was held in August, the members had also rejected the proposal of increasing Lal’s remuneration. While 73% of the votes had favoured the re-appointment, the rest 27% were against it. As a special resolution, it needed support from 75% of the votes cast to pass the proposal.
The company’s public institutional shareholders had particularly opposed the move. Out of the total 8,13,98,998 votes received in the category, 5,86,16,986 (72%) disapproved the proposal and just 2,27,82,012 (27.98%) favoured the move.