IDFC shareholders vote against Vinod Rai’s appointment

Vinod Rai (pictured) has failed to secure a place on the board of IDFC as 62.28 per cent votes from shareholders were against his nomination as director till May 22, 2023. A former Comptroller and Auditor General of India, Rai's name was proposed for the position of non-executive and non-independent director on the board.

IDFC in a filing with the BSE said item no. 5 of the notice – an ordinary resolution (appointment of Rai as director) - has not received the requisite number of votes and hence, does not stand passed. The number of votes in his favour was 37.11 per cent. An ordinary resolution needs 50 per cent plus one vote for its passage.

IDFC'S shares closed 2.02 per cent higher at ~55.65 per share on the BSE.

Investor advisory firm Institutional Investor Advisory Services in a report had said Rai is an independent director, and his second term set to expire on July 30. He resigned as independent director and reappointed non-executive non-independent director of the company from May 25. While Rai meets the fit and proper criterion, his resignation letter has not been filed with the stock exchanges.