Glass Lewis has recommended shareholders vote against reelection of a member of Adani Enterprises’ risk committee after a court criticised “unconscionable conduct” in its Australian port business
Last Updated at July 6, 2021 06:19 IST
MELBOURNE (Reuters) – Proxy advisory firm Glass Lewis has recommended shareholders vote against the reelection of a member of Adani Enterprises’ risk committee after an Australian court criticised “unconscionable conduct” in its Australian port business.
Adani Enterprises’ Australian unit, Bravus Mining & Resources, has been involved in a controversial project to develop the Carmichael mine in Queensland to sell thermal coal into India, despite concerns about global warming.
But it was a decision by the Queensland Supreme Court that found the unit engaged in monopolistic business practices that prompted Glass Lewis’ recommendation.
The Queensland Supreme Court issued a A$107 million ($80.7 million) judgement against Adani Mining in August last year, finding in favour of four companies that used the Abbot Point coal export terminal operated by Adani Enterprises.
“Given the judgement, the practices at Adani Mining reflect poorly upon business and risk management strategies from within Adani Enterprises, especially as the company had to inject funds into Adani Mining on an emergency basis to meet the judgement,” Glass Lewis said.
Adani had no immediate comment on the Glass Lewis advice.
Glass Lewis rates Adani as having “severe” risk of material financial impacts driven by environmental, social and governance (ESG) factors.
“We believe these matters should be concerning to shareholders in how Adani Enterprises’ board oversees risk in operations that may be associated with the globally unpopular Carmichael Mine.”
Since only one member of the risk committee was up for reelection, Glass Lewis advised shareholders to vote against nominee Pranav Adani “due to his failure to fulfil his duty to shareholders as a member of the risk management committee.”
In a separate note, it also flagged as a concern Adani’s involvement with the development of a port in Yangon, Myanmar which has links to the military.
The Adani Family owns the majority of Adani Enterprises. Other top 20 investors include Nomura Holdings, Black Rock Inc, The Vanguard Group and Dimensional Fund Advisors.
($1 = 1.3259 Australian dollars)
(Reporting by Melanie Burton; Editing by Lincoln Feast.)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.