Shareholders reject Ekta, Shobha Kapoor’s salary proposals

Ekta Kapoor, Joint Managing Director of Balaji Telefilms

In a vote by the shareholders of production house Balaji Telefilms, the salary proposals of Managing Director Shobha Kapoor and Joint Managing Director Ekta Kapoor were rejected.

Both the Special Resolutions for two years’ salary starting November 10 of the mother-daughter duo failed to receive adequate votes, a stock filing by the company showed. The resolutions for Shobha Kapoor’s salary received only 56.76 percent votes while Ekta Kapoor’s salary resolution received 55.45 percent votes. A 75 percent majority is required to pass these special resolutions.

Notably, the promoter group that holds nearly 34.35 percent stake in the company abstained from voting on both resolutions, the exchange filing showed. However, the promoter groups voted on other ordinary business resolutions.

Moreover, 207,927 votes were casted on these two resolutions out of a total of nearly 10.11 crore votes.

Of the public shareholding of 65.65 percent, foreign portfolio investors hold 18.43 percent, retail shareholders own 12 percent and Reliance Industries Ltd. Hold a 24.92 percent stake in the company.

“This is a very peculiar case. Where the neither the promoter or large public shareholders or FIIs have voted. It remains to be seen if there is any clause that prevented the promoters from casting their vote on this particular resolution under the share purchase agreement,” Amit Tandon, founder and MD, Institutional Investor Advisory Services (IiAS) told Business Standard.

The production house reported a quarterly net profit at Rs. 1.83 crore in June 2021 up 230.63 percent from Rs. 1.40 crore in June 2020. Its Net Sales soared to Rs 47.51 crore in June 2021 up 124.39 percent from Rs. 21.17 crore in June 2020.