More than half of the companies that conducted their annual general meetings(AGMs) this year did not seek approval from their shareholders for auditor ratification, reported Livemint.
According to data compiled by Glass Lewis & Co. Llc, a US-based proxy advisory firm, 161 companies held their AGMs between May 1 and July 15, out of which, eighty-four companies did not seek ratification of auditors, reported the paper on Wednesday.
Out of the 84 companies, 20 are state-run banks, said the report.
The report further added that about 32 auditors resigned in the first five months of 2018 without mentioning the reason.
“Removing the requirement for annual auditor ratification is a curious move given the overall climate. Auditor oversight has become a significant issue in India, particularly after the ban issued against PwC (Indian affiliate of PwC) by the Securities and Exchange Board of India,” Jeff Jackson, manager, Asia Research, Glass Lewis, wrote in a note, the report mentioned.
First Published: IST