Proxy advisory firm Institutional Investors Advisory Services (IIAS) has opposed the proposed appointment of Sudarshan Venu, 24, to the board of directors of Chennai-based TVS Motor Co.
Sudarshan Venu is the son of TVS chairman Venu Srinivasan and a director of the holding company, Sundaram Clayton.
The company is seeking shareholders’ nod to appoint Sudarshan a whole-time director for five years from February and fix his remuneration.
The special resolution is a Companies Act requirement for companies appointing people below the 25 to the board.
Requests for comment sent to a spokesperson did not elicit response till the time of going to press.
According to the appointment terms, Sudarshan will be eligible for a remuneration of up to Rs 4.17 crore (Rs 41.7 million) annually, including a commission of up to one per cent of net profit (Rs 3.2 crore) and annual salary of a little over Rs 40 lakh (Rs 4 million).
The notice for a postal ballot was issued this month and the shareholders are expected to send votes by March 14.
In a recommendation, IIAS said, “Sudarshan Venu, though academically well qualified, doesn’t have enough experience to be on board.”
Domestic institutions, including Reliance Mutual Fund and Life Insurance Corporation, hold 18 per cent, foreign institutional investors, 1.9 per cent, and promoters, 57 per cent.