IiAS advices voting against Coal India\'s proposal to amend MoA  

July 1, 2014

According to the proxy advisory firm, amendment in memorandum of association will open the floodgates to further leverage cash flows of Coal India and harmful to rights of minority shareholders

Moneylife Digital Team

State run Coal India Ltd (CIL), the country\'s largest coal producer. is reportedly planing to amend its current memorandum of association (MoA) to include manufacture of fertilizers and ammonium nitrate. However, according to Institutional Investor Advisory Services India Ltd (IiAS), allowing this alteration to the MoA will open the floodgates to further leverage cash flows of Coal India, a listed entity, and may harm interests of minority shareholders. The government needs to respect the rights of minority shareholders, the proxy advisory firm said.

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