Shareholders of Kirloskar Brothers Ltd (KBL) have rejected a proposal to investigate the board of directors along with independent directors of the company regarding the alleged irregularities in legal expenses of the company amounting to Rs 70 crore.

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The shareholders voted against a resolution for appointment of an independent forensic auditor to investigate the expenses incurred by the company on legal, professional and consultancy charges over the past six years, at the extraordinary general meeting held on December 8, the company said in a filing to the stock exchanges on Monday.

The resolution also included proposals to verify all records, books of accounts, minutes books and other documents of Kirloskar Brothers and to examine the conduct of the Board of Directors of the company, including the independent directors.

The e-voting facility was open for shareholders between December 5 and December 7. Out of the total votes, 63.99 percent of the votes were against the resolution.

The forensic audit by an external auditor was sought by Kirloskar Industries, the single largest shareholder of Kirloskar Brothers. Kirloskar Industries Ltd. (KIL), a Kirloskar Group company controlled and managed by Atul and Rahul Kirloskar, had requested the EGM of Kirloskar Brothers to consider the forensic audit over the alleged irregularities in expenses. Kirloskar Industries Ltd. holds nearly 24 percent stake in Kirloskar Brothers.

Shares of Kirloskar Brothers ended 5.6 percent higher at Rs 371.05.