Eicher Motors Ltd on Monday said that the resolution to reappoint Siddharth Lal as the Managing Director of the company for five years, starting May 1, 2021, has been passed with the requisite majority. The ordinary resolution to approve payment of remuneration to Lal as the MD was also approved via postal ballot.
"With reference to the captioned subject and in continuation of our letter dated September 24, 2021, in respect of submission of the postal ballot notice dated August 23, 2021, seeking approval of members of the company for re-appointment of Siddhartha Lal as Managing Director of the company and payment of remuneration for 5 years with effect from May 1, 2021, we would like to inform you that the business items/ resolutions as set out in the postal ballot notice have been considered," the company said in a statement today.
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For Lal's appointment as MD, a total of 22,65,28,076 votes were cast via postal ballot. Of this, 21,23,72,920 were cast in his favour, while 1,41,55,156 were cast against him. The resolution to approve Lal's remuneration received 22,30,13,818 votes in favour out of a total of 22,62,67,540 votes cast, while 32,53,722 votes were against it.
The board of Eicher Motors, during the company's 39th annual general meeting on August 17, had decided to reappoint Lal as the MD, with effect from May 1, 2021. The board also approved a revised remuneration structure for the Managing Director, with a maximum cap of 1.5 per cent of profits as per Section 198 of the Companies Act.
Shares of Eicher Motors closed at Rs 2,561, down Rs 51.55 or 1.97 per cent, on the NSE on Monday.
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