Minority shareholders expressed disapproval over the buyback policy of Tata Consultancy Services while expressing hopes the company would issue bonus shares in the future.
"There is a reservation of 15 per cent for small shareholders. We have only followed the law as anyone owning less than Rs 2 lakh of shares is classified as a minority shareholder and we are the largest dividend-paying company in the industry, " said N Chandrasekaran, chairman of Tata Consultancy Services told shareholders at the annual general meeting on Friday. TCS last issued bonus shares in 2009.
Shareholders asserted that the buyback was much more profitable for Tata Sons than for themselves.
Shareholders unanimously backed all resolutions and appreciated the digital focus that the company. Concerns over reskilling and layoffs due to digitisation were also raised.
"Business model should service clients and then profits will come anyway. Our focus remains to ensure hiring right talent first," said Chandrasekaran. The company added that more technology means more jobs and digitisation will not affect employment.
TCS CEO Rajesh Gopinathan said the company was hiring big time with over a third of its workforce being women.
"We have hired 79,000 employees in the past year with 34.7 per cent of our workforce comprising of women. Our focus will remain on Ignio, cloud technology and agile process," he said.