Hyundai's related-party deals under question

Hyundai Motor India Ltd's proposals to buy goods and services in excess of ₹31,000 crore during next fiscal year from related companies, which could be more than half the purchases it made in the previous financial year, have divided two of the country's leading proxy advisory firms.

- Ayaan Kartik

NEW DELHI:

Stakeholders Empowerment Services (SES) and Institutional Investor Advisory Services (IiAS), both based in Mumbai, have put out contrasting notes on Hyundai's resolutions for dealing with seven related companies.

While SES has asked shareholders to vote against 6 out of the 7 resolutions, saying that through the proposed deals, Hyundai Motor India may end up transferring its potential profits to firms linked with its promoters, IiAS did not red flag any proposed deal with the companies, advising shareholders to approve them.

The remote e-voting on the resolutions started on 12 February and is scheduled to end on 13 March. The result will be announced on 17 March.