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Rise in Proxy Votes

One look at the voting pattern on resolutions by AMCs makes it evident that unitholders’ interest is not a priority…

In a recent report released by InGovern Research Services on the voting pattern of mutual funds for 2011-12, the results are not very different compared to the previous year. While AMCs voted on resolutions that were as varied as allowing investments in specific companies by certain schemes to allowing the increase in the remuneration of India Cements MD N Srinivasan, the general mood was more towards abstaining or occasionally voting for a resolution, with just a miniscule proportion of votes going against any resolution. For instance, TATA and L&T AMCs abstained from any voting at all, while Goldman Sachs had no issue to vote for. The entire voting process is in accordance with Sebi guidelines, which calls for ensuring better corporate governance practices, but data in the report seems to indicate otherwise.