BlackRock Inc, the world’s largest asset manager with $10 trillion in assets under management, has exposed irregularities in the way national airline SpiceJet manages its finances. BlackRock recently voted against two SpiceJet board resolutions, citing “substantial accounting irregularities”, the report reported. mint.
BlackRock had voted against a proposed reappointment of Shiwani Singh, the wife of Ajay Singh, chairman and chief executive of SpiceJet. Reappointment of Shiwani as director and adoption of the financial statements were rejected by BlackRock “due to serious reservations from the auditors”.
“Vote against the member of the audit committee (Shiwani Singh) because of significant accounting irregularities for which we believe the audit committee bears some responsibility,” BlackRock said in documents reviewed by the mint.
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It wasn’t just BlackRock that was unhappy with the national carrier’s situation. More than half of public institutions voted against reappointing Shiwani and just under half voted against accepting financial statements for the year.
Legal & General Investment Management (LGIM), American Century Investments and State Street Global Advisors, the company’s three other major foreign investors also voted against the resolutions.
But with Ajay Singh and his family holding a 59.46 stake in the company, both proposals were accepted and passed. Retail investors, who own about a third of the company, have also accepted the proposal. None of the major investment institutions responded to the mint on the details of the irregularities.
A SpiceJet spokesperson added that the company did not know why the investors voted against the proposal as they had not requested any clarification from SpiceJet or requested any clarification on the matter.
“In fact, these investors didn’t even attend the annual general meeting where the company answered various questions from investors,” the spokesperson told Reuters. mint.
(Edited by : Jomy Jos Pullokaran)