Deepak Parekh reappointed HDFC director even as 22.64% shareholders voted against

Mumbai: HDFC chairman Deepak Parekh was reappointed as non-executive director on the board of country’s largest mortgage lender Housing Development Finance Corp. Ltd (HDFC), though 22.64% of the shareholders voted against his continuation. Parekh, who has been at the helm of HDFC for close to 30 years, secured approval of 77.36% shareholders at the annual general meeting (AGM) of the company held in Mumbai on Monday.

J.J. Irani and Keki Mistry too got reappointment as directors to HDFC’s board with more favourable votes. Upendra Kumar Sinha and Jalaj Ashwin Dani were appointed as independent directors at the AGM.

As per the Companies Act, 2013, the votes cast in favour of a special resolution are required to be not less than three times the number of the votes, if any, cast against the resolution.

HDFC had to come out with special resolution for reappointment of Parekh as he would cross the age of 75 years on 18 October next year. The company had sought shareholders approval for continuation of directorship of Parekh.

The mortgage lender had also sought approval for continuation of Irani as director who has attained the age of 75 years, up to the expiry of his present term as an independent director (20 July 2019). 94.58% shareholders voted in favour of Irani.

The HDFC shareholders also approved re-appointment of Mistry as managing director (designated as vice chairman and chief executive officer) for a period of three years. Mistry got 99.51% votes of shareholders. His reappointment was through an ordinary resolution.

HDFC has reported a 54% increase in standalone net profit at ₹ 2,190 crore in the June quarter, helped by the ₹ 511 crore dividend it received from HDFC Bank and better asset quality.

On Tuesday, shares of HDFC fell 1.64%, or ₹ 33.30, to 1994.75 on the BSE while the benchmark Sensex once again rose to a record high of 37,606.58 points, up 0.30%—or 112.18 points—from previous close.

source: livemint