As proxy season draws down in the United States and Europe, annual shareholder meetings have ramped up in India and are set to continue through September.
The duration could yet be extended. Everyday life on the sub-continent is still affected by COVID-19, and companies have received a one-month extension to file their financial results. As such it’s unclear whether India’s proxy season will once again go on through December, as was the case last year. The pandemic may also change how meetings are held, with virtual meetings permitted through the end of the calendar year, and what proposals are on the agenda: Indian law restricts the payment of bonuses when profits are insufficient, and the financial impact of COVID could prompt a wave of companies to seek shareholder approval for waivers of excess remuneration.
Beyond the pandemic, companies are adjusting to regulatory and listing rule changes. The Securities and Exchanges Board of India has updated its listing obligations and disclosure requirements for all companies, with a primary focus on risk management committees, and commercial banks must also contend with new governance regulations from the Reserve Bank of India, including enhanced independence requirements.
With a new regulatory enviroment, and the shape and structure of the season in flux, companies and investors are set for a challenge.
Glass Lewis has the resources you need to prepare.
Our Proxy Season Preview provides an overview of market regulatory updates, changes to Glass Lewis voting policy guidelines, plus market trends and key meetings to watch in the months ahead.
For more discussion from our local market experts, you can listen to our Season Preview Webinar, and review the webinar presentation.