Proxy advisor Glass Lewis has recommended investors vote against 19 management proposals, including the reelection of Chair Gautam Adani, at the July 18 annual meeting of Indian multinational Adani Enterprises.
In a 31-page proxy paper, the proxy advisor recommended against 15 proposals concerning various related party transactions, stating they were not in shareholders’ best interests.
Glass Lewis also opted not to back a proposal concerning the company’s financial statements, citing the “incomplete nature” of the accounts.
A proposal seeking to appoint Gautam Adani as executive chairman for a five-year term and to approve his remuneration was not supported by Glass Lewis due to governance concerns and the absence of a lead director on the board.
“Our reservation centers around the potential conflict of interest between the promoter group and minority shareholders. We believe that shareholders may benefit through more robust governance by appointing a chair that is independent of the promoter group,” the report stated.
Adani Enterprises engages in coal trading, coal mining and oil and gas exploration in India and internationally and is part of the Adani Group which was targeted by short seller Hindenburg Research in January. The short report accused Adani of stock manipulation and accounting fraud, which led to a significant drop in the share prices of Adani companies.
Adani denied the allegations and stated that it complies with all local laws, and said it was considering taking legal action against Hindenburg.
The Adani Family Trust is the largest shareholder of Adani Enterprises, with a stake of over 51%.