Apollo Tyres said on Wednesday its board will seek shareholders' guidance and independent counsel regarding the compensation for its managing director Neeraj Kanwar, whose reappointment was rejected by shareholders last month.

The company’s board which met on October 1, however, expressed “unanimous approval” for his leadership.

“The board will now seek shareholder guidance and independent counsel, on a compensation level commensurate with the position. Once this process is complete, it will re-nominate Kanwar to be reappointed as MD, effective May 28, 2019,” an Apollo Tyres spokesperson said.

Last month, minority shareholders of the company rejected the reappointment of Kanwar as the managing director. Kanwar is also the vice-chairman of Apollo Tyres.

The resolution to reappoint Kanwar as MD was not passed as a special resolution as the votes cast in favour (72.72 per cent) of the resolution were less than three times the votes cast against (27.28 per cent) the resolution, a regulatory filing by Apollo Tyres said last month.