Reliance Power (RPower) shareholders have turned down a special resolution to monetise its assets during the annual general meeting held on July 2.
All special resolutions are required to be approved by 75 per cent or more votes of shareholders.
A BSE filing by the company showed that 72.02 per cent of votes were cast in favour of the resolution, while 27.97 per cent voted against it.
Thus the special resolution could not be passed in the annual general meeting (AGM).
In the AGM notice, the company explained that it is in process of deleveraging and reducing its debt and liabilities.
For this purpose and to unlock the value of various businesses and assets, the company intends to monetise its assets and businesses at an opportune time.
The company is required to obtain the consent of the shareholders by way of a special resolution to sell, lease or otherwise dispose of the whole or substantially the whole of the undertaking or where the company owns more than one undertaking, of the whole or substantially the whole of any of such undertakings.
The company will not dispose of shares in its material subsidiary resulting in a reduction of its shareholding (either on its own or together with other subsidiaries) less than or equal to 50 per cent or cease the exercise of control over the subsidiary without passing a special resolution in its general meeting, it said.
No company shall sell, dispose, or lease assets amounting to more than 20 per cent of the assets of the material subsidiary on an aggregate basis during a financial year without passing a special resolution in its general meeting.
Therefore, the company explained that the special resolution is an enabling resolution empowering the Board of Directors to monetise assets and businesses to achieve the stated objective of deleveraging and reducing debt and liabilities of the company, as also to unlock the value of its various businesses and assets.
The resolution is in furtherance to the consent of members already accorded vide special resolution passed by postal ballot on August 18, 2014, for creation of charge/ mortgage on the assets of the company, it added.