Akshar Spintex Limited , a textile company listed on both BSE and NSE, faced a significant setback as shareholders voted down two key appointments at its Annual General Meeting (AGM) held on August 25, 2025. The rejections included the proposed appointments of Harry Dineshbhai Paghdar as Managing Director and Sureshkumar C. Gajera as Independent Director.

Failed Appointment of Managing Director

The Board of Directors had initially appointed Harry Dineshbhai Paghdar as an Additional Director and Managing Director on May 21, 2025. However, this appointment required shareholder approval at the AGM. The special resolution for Paghdar's appointment as Managing Director did not pass, leaving the position vacant after August 25, 2025.

Mr. Paghdar, notably the son of Mrs. Illaben D. Paghdar, who serves as a Director of Akshar Spintex, was poised to take on a significant role in the company's leadership. The familial connection might have been a factor in the shareholders' decision, although the specific reasons for the rejection were not disclosed.

Rejection of Independent Director Appointment

In a parallel development, the special resolution for the appointment of Sureshkumar C. Gajera as an Independent Director also failed to secure the necessary votes at the AGM. Gajera had been appointed as an Additional Director in the category of Independent Director by the Board on May 21, 2025, the same day as Paghdar's appointment.

Company's Response

Following these unexpected outcomes, Akshar Spintex Limited stated that it would continue to assess and evaluate potential candidates for both the Managing Director and Independent Director positions. The company has committed to keeping the stock exchanges informed of any further developments or decisions regarding these crucial appointments.

Implications for Corporate Governance

The rejection of both appointments at the AGM highlights the active role of shareholders in Akshar Spintex's corporate governance. It underscores the importance of shareholder approval in key management decisions and demonstrates that investors are exercising their voting rights to influence the company's leadership structure.

Harikrushna Shamjibhai Chauhan, the Chairman cum Whole Time Director of Akshar Spintex Limited, signed the official communications to the stock exchanges regarding these developments. The company will now need to navigate the challenges of filling these important positions to ensure stable leadership and maintain investor confidence.

As Akshar Spintex moves forward, the focus will be on how quickly and effectively the company can resolve these leadership gaps and the potential impact on its operations and strategic direction in the competitive textile industry.

Akshar Spintex Limited has announced several key decisions following its recent Board of Directors meeting. The company's board has approved the annual report for the fiscal year ending March 31, 2025, and made important recommendations for shareholder approval at the upcoming Annual General Meeting (AGM).

Board Recommendations and Appointments

The Board has recommended the reappointment of Harikrushna Samjibhai Chauhan as a director, who is liable to retire by rotation. Additionally, the Board has proposed to regularize the appointment of Harry Paghdar as Managing Director and Sureshkumar Chaturbhai Gajera as an Independent Director.

In a move to ensure continued compliance and governance, the Board has approved the appointment of D N Vora and Associates as Secretarial Auditors for five consecutive financial years from 2025-26 to 2029-30. This appointment is subject to shareholder approval at the upcoming AGM.

The Board has also recommended the reappointment of Parsottambhai Vasoya for a second five-year term, demonstrating confidence in the company's leadership continuity.

12th Annual General Meeting Details

Akshar Spintex has scheduled its 12th Annual General Meeting for August 25, 2025, at 3:00 PM. The AGM will be conducted via video conferencing. Shareholders will have the opportunity to participate in remote e-voting, which will be available from August 22 to August 24, 2025. The company has set August 18, 2025, as the cut-off date for e-voting eligibility.

Additional Corporate Actions

The LODR data reveals further details about the company's corporate actions:

1. The Board has approved the payment of remuneration to Cost Auditors for the Financial Year 2025-2026.
2. CS Piyush Jethva, a Practicing Company Secretary, has been appointed as the scrutinizer for the e-voting process.
3. The company has taken note of the Secretarial Audit Report for the financial year 2024-25, as provided by D N Vora & Associates.
4. NSDL has been appointed to conduct the online AGM through VC/OAVM and to send AGM notices via email to registered shareholders.

Management Commentary

Harikrushna S. Chauhan, Chairman and Wholetime Director of Akshar Spintex Limited, signed off on these decisions, underlining the company's commitment to transparent governance and shareholder engagement.

These corporate actions reflect Akshar Spintex's focus on maintaining strong corporate governance practices and ensuring continuity in its leadership team as it moves forward in the 2025-26 fiscal year.