Shareholders nix Gokaldas Esop plan

Apparel maker Gokaldas Exports' plan to reward its top executive with a generous stock grant has been blocked by the company's institutional shareholders, more than half of whom voted against the resolution enabling its latest employee stock option plan (Esop).

- Nehal Chaliawala

According to disclosures made late Monday evening, the company's four resolutions submitted for shareholder ratification last month were defeated.

One of the resolutions concerned granting stock options in excess of 1% of the company's issued capital to managing director Sivaramakrishnan Ganapathi. Data show that over 37% of shareholder votes were against this special resolution, which required a minimum 75% approval to be ratified.