Before ZEE, these companies faced shareholder activism
The largest shareholders of Zee Entertainment Enterprises (ZEE) -- Invesco Developing Markets Fund and OFI Global China Fund LLC - have called an extraordinary general meeting seeking resignation of Managing Director Punit Goenka and two directors from the board. This isn’t the first time when the shareholders of a company have shown exit door to the promoters alleging wrong doings.
In 2018, shareholders of Fortis Healthcare moved to remove the directors nominated by the erstwhile promoters of the company. Shareholders rejected the appointments of these directors alleging their involvement in governance issues in the company. Some of these directors were family members of erstwhile promoters, while one nominated director was an employee in Ranbaxy.
In 2020, shareholders of Lakshmi Vilas Bank (LVB) rejected the proposal to appoint seven directors on the board of the private sector bank including the Managing Director and CEO S Sundar. The rejection by the shareholders came at a time when the bank was going through a major financial crisis on account of deterioration of asset quality and lack of capital. LVB had been in dire need of capital and had been scrambling to find a buyer.
In 2018, Apollo Tyres Limited shareholders forced the promoters, Neeraj Kanwar and Onkar S Kanwar, to take a 30 percent salary cut.
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Earlier this year, shareholders of Eicher Motors Limited voted against the re-appointment of Siddhartha Lal as managing director, protesting against a proposal to raise his salary by 10 percent at a time of falling revenues and profits.
Vedanta Limited: This year, shareholders opposed the reappointment of former Securities and Exchange Board of India (SEBI) chief U K Sinha to the company's board. The resolution was passed with promoters’ support.
Maruti Suzuki India Limited: In 2014, shareholders forced India’s biggest carmaker to backtrack on a production deal with its parent wherein it would buy cars from a new Suzuki plant in India instead of making them itself.
