Infosys shareholders approve new AoA, pay hike for COO Pravin Rao
NEW DELHI: Infosys today said its shareholders have approved the proposal to adopt a new Articles of Association (AoA), bringing in provisions for buyback of shares and appointment of independent directors.
"The resolutions...have been passed by the members of the company with requisite majority. The approval is deemed to have been received on the last date of receipt of postal ballot forms March 31," Infosys said in a BSE filing.
Shareholders also approved revision in compensation of Chief Operating Officer & Whole-time Director U B Pravin Rao, and also appointment of D N Prahlad as an Independent Director.
In February, Infosys Board had approved pay hike of its Chief Operating Officer U B Pravin Rao.
According to the new Articles of Association (AoA), Infosys "may purchase its own equity shares or other securities by way of a buy-back arrangement."
Infosys, which has liquid assets worth Rs 35,697 crore (about $5.25 billion) on its books, has been under pressure from investors to utilise the amount either through share buyback or a generous dividend.
The pressure has grown further after its industry peers Cognizant and Tata Consultancy Services announced their buyback offers worth $3.4 billion (about Rs 22,652 crore) and Rs 16,000 crore, respectively.
While there have been reports that Infosys may consider a Rs 12,000 crore share buyback, the company has maintained that it will take a decision at an "appropriate time".
Besides, Infosys has inserted provisions related to issuance and allotment of convertible preference shares, cumulative preference shares and redeemable preference shares in the new AoA.
While Article 13 relating to power of the Board to issue shares at a discount has been deleted from the new AoA, provisions relating to nomination facility for shares by a shareholder have been inserted.
"An express provision has been made on the appointment of independent directors to be made on terms in accordance with the applicable law have been inserted," the company said.
The provisions also said the company may appoint 15 directors and any increase beyond such limit will require special resolution in line with the Companies Act, 2013.
"The resolutions...have been passed by the members of the company with requisite majority. The approval is deemed to have been received on the last date of receipt of postal ballot forms March 31," Infosys said in a BSE filing.
Shareholders also approved revision in compensation of Chief Operating Officer & Whole-time Director U B Pravin Rao, and also appointment of D N Prahlad as an Independent Director.
In February, Infosys Board had approved pay hike of its Chief Operating Officer U B Pravin Rao.
According to the new Articles of Association (AoA), Infosys "may purchase its own equity shares or other securities by way of a buy-back arrangement."
Infosys, which has liquid assets worth Rs 35,697 crore (about $5.25 billion) on its books, has been under pressure from investors to utilise the amount either through share buyback or a generous dividend.
The pressure has grown further after its industry peers Cognizant and Tata Consultancy Services announced their buyback offers worth $3.4 billion (about Rs 22,652 crore) and Rs 16,000 crore, respectively.
While there have been reports that Infosys may consider a Rs 12,000 crore share buyback, the company has maintained that it will take a decision at an "appropriate time".
Besides, Infosys has inserted provisions related to issuance and allotment of convertible preference shares, cumulative preference shares and redeemable preference shares in the new AoA.
While Article 13 relating to power of the Board to issue shares at a discount has been deleted from the new AoA, provisions relating to nomination facility for shares by a shareholder have been inserted.
"An express provision has been made on the appointment of independent directors to be made on terms in accordance with the applicable law have been inserted," the company said.
The provisions also said the company may appoint 15 directors and any increase beyond such limit will require special resolution in line with the Companies Act, 2013.
