Financial Daily from THE HINDU group of publications
Sunday, Jun 15, 2003
Info-Tech - Software
Narayana Murthy to continue till 60 Infy ADS not in current quarter
BANGALORE, June 14
INFOSYS Technologies' sponsored ADS issue will not take off in the current quarter as the company nears the end of April-June session of fiscal 2004.
The Chief Financial Officer, Mr Mohan Das Pai, replying to shareholders query at the company's 22nd annual general meeting here said "the ADS issue before June 30 may not be possible. As required by the Securities and Exchange Commission, the company has to provide updated information, which is possible only after disclosing the June quarter earnings."
"We are in constant touch with our investment bankers and no immediate time line has been fixed yet," Mr Pai added. Infosys is going in for a sponsored ADS issue where it aims to offer two to three million ADS in the US market.
Meanwhile, all the resolutions at the AGM were passed with requisite majority after a ballot even as a proxy for an investor demanded ballot for the agenda on re-appointment of several directors on board.
The AGM also approved the deletion of Article 107 of the Articles of Association of the company, which provided that as long as Mr N.R. Narayana Murthy and or his relatives held not less than 5 per cent of the issued equity capital of the company, Mr Narayana Murthy would continue as the managing director of the company and not be liable to retire by rotation. However, Mr Narayana Murthy had voluntarily relinquished the post of managing director in August 1998, and the Article had become redundant.
Explaining the rationale behind the scrapping of Article 107, Mr Narayana Murthy told shareholders that such a move was in line with best global corporate practices as Infosys seeks to compete globally and heighten its brand visibility.
"In keeping with our walk, we felt that our talk should also be synonymous," he said assuring the shareholders that he would serve the company till he reaches the natural retirement age of 60 in August 2006.
"As long as I am physically fit, mentally fit and until the time of 60th year, I will continue to serve the company... .the CEO, the CFO, the COO or other members of the board and every Infoscian in whatever capacity," Mr Narayana Murthy said, adding that "let there not be any doubt that the deletion of Article 107 is a clause for me to get off the train."
Speaking on the sidelines of the AGM, Mr Narayana Murthy quashed speculation that he would step down prematurely. He also ruled out the possibility of diluting his and his family's holding in the company, which stood at 6.36 per cent as on March 31, 2003.
The AGM also approved the final dividend of Rs 14.50 per Rs 5 share, taking the total dividend during 2002-03 to Rs 27 per share. Stating that it was in line with international best practices, Mr Narayana Murthy announced the appointment of Mr Deepak Satwalekar as the lead independent director on the board of Infosys. The shareholders also approved the reappointment of Mr Srinath Batni as whole-time Director and Dr Omkar Goswami, Senator Larry Pressler and Ms Rama Bijapurkar as directors of the Company. Mr Sridar Iyengar was appointed as a director of the company.
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