Advisory firm Institutional Investors Advisory Services (IIAS) has advised investors to vote against a resolution seeking the reappointment of the statutory auditor of technology major Infosys, the Business Standard newspaper has reported.
According to the report among other things, the company is seeking shareholders' approval for the reappointment of BSR & Co as statutory auditor at its annual general meeting to be held in Bangalore on Saturday. While IIAS is opposed to this resolution, it is in favour of all the other resolutions up for shareholders' approval, including the adoption of accounts, appointment of directors and on executives' compensation.
IIAS is an advisory firm dedicated to providing participants in the Indian market with independent opinions, research and data on corporate governance issues.
According to the Business Standard IIAS has said the continuation of the auditor for six years and the same partner signing the report for more than three years were events carrying "moderate risk".
According to the report, BSR & Co has been the statutory auditor of Infosys since at least FY1999 and according to them it is advisable to rotate auditors every six years.