Deepak Parekh, the non-executive chairman of Housing Development Finance Corporation Ltd (HDFC), has been re-appointed again at the annual general meeting (AGM) of the company held in Mumbai on Monday.

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However, Parekh’s re-appointment was not that smooth as nearly 22.64 percent of the shareholders voted against his continuation.

Nearly a quarter of the shareholders, 22.64%, voted against Parekh and 77.36% voted in his favour.

Parekh currently holds directorships of 10 companies including HDFC Ltd.

According to the ministry of corporate affairs data, he is a part of the board of HT Parekh Foundation, Breach Candy Trust and Indian Institute for Human Settlements.

Out of these 10 companies, four are part of the HDFC Group including the flagship company HDFC Ltd.

Other directorships among the group companies include - HDFC Standard Life Insurance Company, HDFC Asset Management Company and HDFC Ergo General Insurance Company.

Among non-HDFC group companies, Parekh is the chairman of the board of GlaxoSmithKline Pharmaceuticals since 1994 and Siemens Ltd since 2003.

He is also a part of the board of Indian Hotels Company for 18 years as a non-executive independent director.

Parekh was inducted as an independent director on the board of Network18 Media & Investments in 2014 and also as chairman and member of Advisory Board for BAE Systems India (Services) in 2015.

The most recent appointment for Parekh is Bangalore International Airport, where he has been appointed as an additional director last year.

According to reports, US proxy advisory firm ISS had advised investors to vote against the resolution to reappoint Parekh as non-executive chairman of HDFC as he also sits on boards of many other companies and time constraints may prevent him from discharging his duties effectively.

However, according to the new Companies Act 2013, Parekh’s directorships are in line with the law.

According to the Companies Act, any director, including alternative directors, should not hold directorships in more than twenty companies at the same time the directorships in public companies should not exceed ten.

So, a person can hold directorships in a maximum of ten public companies out of the total limit of 20 companies.

Disclaimer:

Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

First Published:Aug 1, 2018 3:27 PM IST