Infosys seeks shareholders' nod to amend articles of association
24 February 2017
Infosys, of India's second largest software exporter, on Thursday informed the exchanges that it has sought shareholder approval to amend the company's articles of association, which could include a provision to buy back shares.
The changes in amending articles of association is in conformity with the Companies Act 2013.
An amendment of the articles of association and creation of new provisions will facilitate a buyback as the present articles of association does not have a such provision.
The Infosys board, which met on Thursday, also approved the recommendations of the nominations and remuneration committee for revising the remuneration given to COO and whole-time director, UB Pravin Rao.
In the 2016 fiscal, Rao drew a salary of $1.39 million (Rs9.27 crore), which included long term benefits, earnings from stock options and bonus incentives. In 2015 financial year, Rao's remuneration was Rs6.08 crore.
The board also sought shareholders' approval for appointment of DN Prahlad as an independent director. Prahlad is currently an additional director and was appointed to the board early last year.
Shareholders can vote from 2 to 31 March and the results will be declared on 5 April.
The actual size of the buyback is expected to be announced in April, once the results of the postal ballot is released.
This will be the first buyback in the company's history and comes day after similar moves by its rivals Cognizant and TCS, as pressure mounts on IT companies to return cash to shareholders in an increasingly difficult demand environment.
Cognizant announced a $3.4-billion buyback of shares a couple of weeks back, which was followed by TCS announcing a buyback of $2.3 billion (Rs16,000 crore).
Infosys shares closed at Rs1,009 or 1.73 per cent up from previous day's close.