Rail Vikas Nigam sets Sept 30 AGM to approve ₹2.11 dividend
Rail Vikas Nigam Limited schedules its 21st Annual General Meeting for September 30, 2024, to approve a final dividend of ₹2.11 per share and appoint new board members including Shri N.C. Karmali.
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rail vikas nigam shareholders will vote on a final dividend of ₹2.11 per equity share and the appointment of new board members at the company’s 21st Annual General Meeting (AGM) on September 30, 2024. The meeting, held via Video Conferencing (VC) or Other Audio-Visual Means (OAVM), also seeks approval for the adoption of audited financial statements for FY24 and the ratification of cost auditor remuneration. This assembly marks a critical governance milestone for the government-owned infrastructure developer, confirming shareholder consent for executive leadership changes and profit distribution.
The notice, signed by Company Secretary Kalpana Dubey, was dispatched electronically starting September 6, 2024, in compliance with Regulation 30 and Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors had previously recommended the dividend during its 141st meeting on May 17, 2024. Shareholders holding equity shares as of the record date, September 23, 2024, are eligible to participate. Remote e-voting through National Securities Depository Limited (NSDL) opens on September 27, 2024, at 9:00 A.M. and closes on September 29, 2024, at 5:00 P.M.
Key Agenda Items
The AGM agenda comprises both ordinary and special business resolutions. Under ordinary business, shareholders will consider the reappointment of Mr. Dhananjaya Singh and Mrs. Anupam Ban, who retire by rotation but remain eligible for reappointment. Additionally, members will authorize the Board to fix remuneration for Statutory Auditors for FY25, noting that the Comptroller and Auditor General of India (C&AG) appoints statutory auditors for government companies. For FY24, M/s V K Dhingra & Co served as Statutory Auditors, with total fees paid amounting to ₹0.74 crore.
Under special business, the meeting will appoint Shri N.C. Karmali, Executive Director (Coord.)/Gati Shakti at the Railway Board, as a Part-time Government Nominee Director. Karmali, an Indian Railways Service of Engineers officer with a B.Tech from IIT Kharagpur, was initially appointed as an Additional Director by the Board on May 20, 2024. His formal appointment by shareholders solidifies his tenure, liable to retire by rotation. Furthermore, shareholders will ratify the remuneration of ₹75,000 plus GST for Cost Auditors M/s R M Bansal & Co., appointed for FY25.
| Agenda Item | Description | Status |
|---|---|---|
| Final Dividend | Approval of ₹2.11 per equity share for FY24 | Ordinary Resolution |
| Director Reappointment | Reappointment of Dhananjaya Singh and Anupam Ban | Ordinary Resolution |
| New Director Appointment | Appointment of Shri N.C. Karmali as Govt. Nominee | Ordinary Resolution |
| Statutory Auditor Fees | Authorization for Board to fix FY25 remuneration | Ordinary Resolution |
| Cost Auditor Fees | Ratification of ₹75,000 + GST for M/s R M Bansal & Co. | Ordinary Resolution |
Participation and Compliance
The meeting will be conducted virtually without physical presence, adhering to Ministry of Corporate Affairs (MCA) Circular No. 09/2023 and SEBI guidelines. The deemed venue is the company’s registered office in New Delhi. CS Naresh Kumar Sinha of M/s Kumar Naresh Sinha & Associates has been appointed as the scrutinizer for the voting process. Institutional shareholders must submit scanned board resolutions authorizing their representatives to vote via email to the scrutinizer.
Shareholders are reminded that dividend income is taxable in their hands, and Tax Deducted at Source (TDS) applies as per the Finance Act, 2020. Residents can submit Form 15G/15H to avoid TDS if not liable for income tax, while non-residents may claim treaty benefits by submitting required documentation to dividends@rvnl.org by September 25, 2024. Failure to register PAN may result in TDS at a higher rate of 20%. The Register of Members will remain closed from September 24 to September 30, 2024, to determine dividend entitlements.
Historical Stock Returns for Rail Vikas Nigam
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.26% | -0.66% | -6.66% | -30.86% | -40.58% | +642.79% |
How might the appointment of Shri N.C. Karmali, with his Gati Shakti background, influence Rail Vikas Nigam's strategic alignment with India's broader infrastructure integration goals?
Given the relatively modest final dividend of ₹2.11 per share, what does this payout ratio suggest about RVNL's capital allocation priorities for upcoming large-scale railway projects?
What impact could the reappointment of current board members have on the company's governance continuity and execution speed for pending infrastructure contracts?
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