Vijay Shekhar Sharma, the founder of Paytm, passed a crucial test with the shareholders wholeheartedly voting in favour of a resolution seeking his reappointment as the managing director and CEO.

Shareholders of One97 Communications (OCL) also supported another resolution on his remuneration.

These resolutions were put to vote at its annual general meeting (AGM) last Friday.

The AGM was significant for Sharma as three proxy advisory firms had recommended that shareholders vote against the proposals. The development may lead to a rally in OCL shares when the markets resume trading on Monday.

Uncertainty over his reappointment had recently put the stock under pressure.

The company said that 99.67 per cent of the votes were polled in favour of the resolution pertaining to his reappointment.

On the other hand, the resolution regarding his remuneration got the support of 94.48 per cent of the shareholders.

Reacting to the development, a senior official from a proxy advisory firm said that institutions particularly private equity investors who were shareholders prior to the IPO of Paytm did not vote against him.

Among key investors, Ant Financial itself holds almost 25 per cent of the company. Some of the other investors include SVF India Holdings (Cayman) (17.46 per cent stake), Saif III Mauritius Company (10.59 per cent), Alibaba. com Singapore ECommerce Private Ltd (6.26 per cent) and Saif Partners India IV Ltd (4.50 per cent).

On the other hand, mutual funds hold 1.14 per cent of the company for the quarter ended June 30, 2022.

Among the proxy advisory firms, IiAS recommended against the reappointment of Sharma.

It also issued a similar suggestion with regard to the remuneration for Paytm group chief financial officer Madhur Deora, though it favoured his appointment as a whole time director designated as executive director, president and group chief financial officer for five years from May 20, 2022.

“We are thankful to our shareholders for their unwavering support and faith in our leadership. We remain committed to building a large, profitable company and creating long-term shareholder value, while driving financial inclusion in the country," One97 Communications said in a statement.

The Paytm parent added that the support of the shareholders with almost 100 per cent votes in favour of Sharma is a reflection of its “investors” faith in his leadership.