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Watchdog warns United Spirits [Herald, The (Scotland)]
[September 20, 2014]

Watchdog warns United Spirits [Herald, The (Scotland)]


(Herald, The (Scotland) Via Acquire Media NewsEdge) A CORPORATE governance watchdog is advising shareholders to vote against the reappointment of Vijay Mallya as chairman at United Spirits.

In a report Institutional Investor Advisory Services India (IiAS) stated it felt Mr Mallya could not rejoin the board at the spirits group until financial issues between his Kingfisher Airlines and various banks had been resolved. IiAS said: "Until this matter is resolved Vijay Mallya continuing on the board will constrain United Spirits' ability to raise debt from the Indian financial system.



"Therefore IiAS recommends voting against his reappointment." The proxy voting advisory firm added: "[We] recognise that United Spirits is a Diageo subsidiary and can access funds support from its parent company. However this is not an optimum way of doing business." IiAS also suggested voting against a proposed upwards revision in remuneration for the United Spirits chief financial officer Pathai Murali.

United Spirits sold the Whyte & Mackay Scotch whisky business to Phillipines brandy producer Emperador for pound(s)430 million in March this year. The offloading of Whyte & Mackay was demanded by competition watchdogs following Diageo's move to take a stake in United Spirits.


United Spirits was not available for comment.

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