|
Voting Policy
|
- SEBI vide its circular no. SEBI/IMD/Cir No 18/198647/2010 dated March 15, 2010 has stated that mutual funds should play an active role in ensuring better corporate governance of listed companies. This policy is drafted in pursuance of above referred circular and clarificatory email received from SEBI on June 23, 2011 and provides general philosophy, broad guidelines and procedures for exercising voting rights.
- Axis Asset Management Company Limited (AMC), Investment Manager to Axis Mutual Fund (“the Mutual Fund”), shall endeavor to vote on all resolutions which may affect its unitholders interests, either by postal ballot or through attendance.
- The AMC shall not give proxy to brokers, for voting on its behalf.
- Where the holding of the Mutual Fund Scheme(s) is 5% or more of the paid up capital of the investee company, the AMC shall be represented by the concerned Fund Manager or concerned analyst tracking the stock or any other Equity Fund Manager.
- Where the holding of the Schemes is less than 5% of the paid up capital of the Investee Company, the AMC may vote through the postal ballot method.
- The decision regarding the voting on the resolution, i.e. whether the AMC will (i) attend/not attend, (ii) vote/abstain, (iii) if voted, for or against the resolution proposed by the Investee Company will be taken by the Fund Manager in consultation with the Head - Investments.
AMC recognizes that there may be a potential conflict of interest when it decides to vote for / against Investee Company, on behalf of the Mutual Fund Scheme(s), which is a group company of AMC or where the Investee Company has substantial investments in the Scheme(s) of the Mutual Fund. AMC shall specifically review all voting proposals and take decisions with respect to voting on such proposals in the best interest of the unit holders.
- The actual exercise of the proxy votes in the AGMs/EGMs of the investee companies will cover the following matters and will be reported in the SEBI prescribed format:
- Corporate governance matters, including changes in the state of incorporation, merger and other corporate restructuring, and anti takeover provisions;
- Changes to capital structure, including increases and decreases of capital and preferred stock issuances;
- Stock option plans and other management compensation issues;
- Social and corporate responsibility issues;
- Appointment and Removal of Directors;
- Any other issue that may affect the interest of the shareholders in general and interest of the unit-holders in particular.
- Whenever there is a change in Auditors, Independent Directors, key management personnel of the Investee Company, the AMC shall be vigilant and make more enquiries, including asking the Investee Company to provide reasons for the same.
- Any corporate governance issue requiring support from other shareholders may be discussed with them by the AMC.
- The Investment Review Committee of AMC will note the action taken in respect of voting in its meetings.
- The general policies and procedures stated above for exercising the voting rights in respect of shares held by the Scheme(s) of the Mutual Fund will be disclosed on the website of the Mutual Fund as well as in the annual report distributed to the unit holders from the financial year 2010-11 onwards.
|
|
Voting Details 2010 – 2011.click here to download PDF.
|