The shareholders of GHCL Ltd have voted against the reappointment of Sanjay Dalmia as a director.

Dalmia has been a director on the board of GHCL since its inception in 1983 and was appointed chairman in 2005.

GHCL, which has revenues of Rs 4,500 crore in the last fiscal, is present in the chemicals and spinning businesses.

The proposal to reappoint Dalmia was put to vote at the company’s 40th annual general meeting on July 1.

While the resolution needed the approval of at least 75 per cent of the vote, it could secure 67.73 per cent.

Proxy advisory Institutional Investor Advisory Services (IiAS) had recommended voting against Dalmia.

GHCL said the resolution to reappoint Dalmia as a director of GHCL Ltd on a rotational basis was presented at its 40th AGM on Saturday.

“In the democratic process which requires the resolution to obtain a minimum of 75 per cent votes cast during the AGM in its favour, the resolution was able to secure 67.73 per cent of votes. Thus the said resolution was not approved by the shareholders with the requisite majority,’’ it added.

“As a professional company that is committed to the highest levels of governance, GHCL will respect and abide by the decision of its shareholders. Sanjay Dalmia has been a director on the board of GHCL since its inception in 1983 and was appointed as the chairman of the board in January 2005. His guidance and acumen have been instrumental in the company’s growth and success through a span of four decades.”

“However, in the last board meeting which was held on April 29, 2023, he had expressed his desire to retire from the board due to his age and pursue his philanthropic interests. But was compelled to accept the proposal of his reappointment due to the insistence of the board members,’’ GHCL said.