Orient Green Power :
At its next annual general meeting on June 28, 2024, Orient Green Power intends to ask shareholders for permission to raise its authorised share capital from Rs 1,600 crore to Rs 2,500 crore. In order to fund its operations going forward, the corporation plans to raise money and revise its memorandum of association.
Obtaining Authorised Share Capital :
The proposal to raise the authorised share capital of Orient Green Power is on the agenda for the AGM, which is set for June 28, 2024. The company intends to increase the approved share capital from the current Rs 1,600 crore to Rs 2,500 crore. In order to assist upcoming capital-raising efforts and other business objectives that might occur.
The necessity of this increase and the corresponding changes to Clause V of the Memorandum of Association are explained in the notice of the AGM, dated June 6. Per Sections 13, 61, and 64 of the Companies Act, 2013, as well as other pertinent statutory and regulatory approvals, these modifications are subject to approval by the company’s members through an ordinary resolution.
Consequences for Investors :
To improve the company’s financial flexibility, a strategic increase in approved share capital has been made. By increasing the permitted share capital, Orient Green Power puts itself in a position to carry out major capital-raising projects down the road. This is essential for satisfying varied corporate requirements, growing operations, and financing new projects.
Suggested Adjustments to Leadership Salary :
Apart from requesting approval for augmenting the authorised share capital, Orient Green Power has put forth a resolution to enhance the gross compensation of T Shivaraman, the company’s Managing Director and CEO. The plan calls for increasing his yearly salary from Rs 60 lakh to Rs 120 lakh. The purpose of this change is to bring Shivaraman’s compensation in line with industry norms and to demonstrate the company’s appreciation of his leadership.
T Shivaraman’s reinstatement :
The reinstatement of T Shivaraman as Managing Director and CEO for an extra five years, beginning on March 30, 2025, and ending on March 29, 2030, will also be discussed at the AGM. His compensation for the longer period is approved in the plan. Shivaraman’s rescheduled appointment demonstrates the company’s faith in his abilities to lead Orient Green Power towards success and long-term growth.
Strategic Goals :
The strategic goals of Orient Green Power are in line with the suggested increase in authorised share capital and the changes to executive compensation. The goals of these actions are to guarantee strong governance procedures, draw and keep top talent, and bolster the company’s financial base.
Orient Green Power hopes to accomplish its long-term business objectives and improve its operational skills by getting shareholder approval for these ideas.
In Conclusion :
The agenda that Orient Green Power has set for the next AGM is indicative of its proactive commitment to both leadership continuity and financial management. The company’s financial stability and operational effectiveness will be strengthened by the planned increase in authorised share capital and the changes to executive compensation. If the recommendations are approved by the shareholders, Orient Green Power will have more confidence and agility to pursue its strategic ambitions.