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Reliance Power shareholders reject special resolution to monetize assets

All special resolutions must be approved by 75% or more of the votes of shareholders.

New Delhi:

Reliance Power (RPower) shareholders rejected a special resolution to monetize its assets at the July 2 annual general meeting.

All special resolutions must be approved by 75% or more of the votes of shareholders.

A BSE filing filed by the company showed that 72.02% of votes were cast in favor of the resolution, while 27.97% voted against.

Thus, the special resolution could not be passed at the Annual General Meeting (AGM).

In AGA’s notice, the company explained that it was in the process of deleveraging and reducing its debt and liabilities.

To this end and to unlock the value of various activities and assets, the Company intends to monetize its assets and activities at the appropriate time.

The company is required to obtain the consent of the shareholders by means of a special resolution to sell, lease or otherwise dispose of the whole or substantially all of the business or, if the company has more than one business, the whole or substantially all of these businesses.

The company will not sell shares of its major subsidiary resulting in a reduction of its participation (alone or with other subsidiaries) less than or equal to 50% or will cease to exercise control over the subsidiary without entering into a special resolution agreement when of its general meeting, he said.

No company may sell, transfer or lease assets representing more than 20% of the assets of the main subsidiary on an aggregate basis during a financial year without passing a special resolution at its general meeting.

Therefore, the company explained that the special resolution is an enabling resolution empowering the board of directors to monetize assets and businesses to achieve the stated objective of deleveraging and reducing the company’s debt and liabilities, as well only to release the value of its various activities and assets.

The resolution follows member consent already granted by a special resolution passed by mail ballot on August 18, 2014, to create a charge/mortgage on the assets of the company, he added.


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