New Delhi, 22 May (H.S.):

Online food and beverage delivery company Swiggy has not received the required shareholder approval to amend its articles of association (AOA), through which it had sought to qualify as an Indian-owned and controlled company (IOCC).

In a filing to the stock exchange, the company said the proposal to amend its articles of association received support from 72.35 percent of shareholders, which fell short of the required threshold by 2.65 percent. The company had conducted the voting process through postal ballot and e-voting. Approval was sought for amending the AOA and for appointing Renan de Castro Alves Pinto as a non-executive, non-independent nominee director.

Responding to the outcome of the special resolution, a Swiggy spokesperson said on Friday that the company accepts the result of the proposal, which was approved by 72.35 percent of shareholders, falling 2.65 percent short of the required threshold. However, the proposal to appoint him was passed with an overwhelming majority of 98.98 percent. The spokesperson added that the company will continue engaging with its shareholders and will work toward a positive outcome.

It is noteworthy that under the rules of the Foreign Exchange Management Act, a company is currently considered Indian-owned and controlled only when its ownership and control rest with Indian citizens or eligible Indian entities. Domestic control is ensured through the structure of the board of directors and the nomination system.

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Hindusthan Samachar / Jun Sarkar