Suzlon Energy Ltd shareholders approved the re-appointment of Tulsi Tanti as managing director for another three years and a pay hike for him even after concerns raised in some quarters over the proposals.
These were among 12 resolutions approved by shareholders in a postal ballot, Suzlon said in a stock exchange filing today.
Tanti, who founded Suzlon in 1995, will continue as managing director for three more years starting April 1 and his annual remuneration will increase to Rs 3 crore from Rs 2 crore.
Some proxy firms had said that there should be a change in leadership at the wind-turbine maker considering its performance. Suzlon has been facing challenging business conditions.
Proxy advisory firm Institutional Investor Advisory Services had said in a report on Wednesday that shareholders must consider a change in leadership.
A source close to the company said Tanti has not taken any salary in the past three years, reiterating his commitment towards putting the company back on the growth track.
"Moreover, he has infused personal capital to the tune of Rs 1,800 crore to help the company tide over the cash crunch," the source said.
Apart from Tanti's reappointment and a resolution on increasing remuneration, the shareholders approved 10 proposals, including those related to the preferential issue of shares to certain entities and promoters and increasing the borrowing limit to Rs 20,000 crore from Rs 10,000 crore.
Suzlon reported a consolidated net loss of Rs 1,075.25 crore in the December quarter. In the year-ago period, the loss was Rs 1,154.53 crore.
In the third quarter of the current financial year, Suzlon's total income climbed to Rs 5,052.20 crore from Rs 4,047.71 crore a year ago.
At the end of December, the group's order book stood at 5.5 GW (gigawatts), valued at about Rs 47,393 crore (USD 7.7 billion), according to the February 14 earnings statement.