New Delhi: Realty major DLF on Tuesday said it has sought sharholders approval to modify the company's memorandum of association for providing specific retirement benefits to directors who have made outstanding contribution to the growth of the company.
The company has sought consent of shareholders through postal ballot to pass special resolution - Alteration in the Object Clause of Memorandum of Association (MOA) of the company, DLF said in a filing to the BSE.
According to the existing clause MOA, DLF has a right to maintain any contributory or non-contributory pension or superannuation funds for providing pension, allowances, emoluments, medical relief and other payments to any persons, directors and officers (along with their wives, widows, families and dependents) of the company.
DLF's board has now proposed amendments to this clause in order to introduce a specific and limited pension scheme aimed at extending retirement benefits to directors who have performed exceptionally and have made extra-ordinary and outstanding contribution for the growth of the company.
"Accordingly, it is proposed to amend Object clause 35 of the MOA to provide for the specific retirement benefits," DLF said in the explanatory statement of Postal ballot notice. DLF has proposed to authorise the board (in consultation with remuneration committee) to formulate the scheme in line with the specific fundamental parameters for determining eligibility for retirement benefits.
None of the Directors of the company is interested/concerned in the special resolution except and to the extent, that certain members of the board might meet eligible criteria for the specific retirement benefits subsequent to their
retirement, the notice said.