Infosys AGM Approves Raising of FII Limit from 49% to 100%
Bangalore, India - June 8, 2002: The 21 st Annual General Meeting (AGM) of Infosys Technologies Limited was held today in Bangalore. Senator Larry Pressler, independent member of the Board at Infosys, chaired the Annual General Meeting. He was a Member of U. S. Congress for 22 years (of which he served as a US senator for 18 years) during which he served on the Senate Foreign Relations Committee and was the chairman of the Commerce Science and Transportation Committee. Currently, he is a senior partner in the Washington, D. C. law firm of O'Connor & Hannan, and is the chairperson of the law firm's Telecommunications and Business Group where he specializes in regulatory law, commercial law, telecommunications law, and lobbying activities.
At the AGM, the members of the company approved an increase in the limit on the aggregate Foreign Institutional Investors (FII) holding in the company from the present 49% to 100% of the paid - up equity share capital of the company.
The members also approved the appointment of Mr. Claude Smadja as an independent member of the board of Infosys.
The board had recommended a final dividend of Rs. 12. 50 per share (250% on par value of Rs. 5) on April 10, 2002 and the members approved the same at the AGM. The said dividend would be paid to all the members of Infosys whose name appears in the register of shareholders as on May 24, 2002.
Effective April 1, 2002, the dividend income is proposed to be taxed in the hands of the shareholders and, accordingly, is subject to deduction of withholding tax, if any. The withholding tax is applicable only to those shareholders whose dividend income is more than Rs. 1,000. However, shareholders whose total dividend and interest income is less than Rs. 50,000 for the financial year, can submit a declaration in Form 15 G, which would enable them to receive their dividend without any tax being withheld. Till date, The Central Board of Direct Taxes (CBDT) has not notified the amended Form 15G. Therefore, the payment of dividend to those shareholders whose dividend payment from Infosys is between Rs. 1,000 to Rs. 50,000 has been kept in abeyance till the revised Form 15G is notified by the Government. The company has made several representations to the CBDT and expects the amended form 15G to be notified soon. In any case, such dividends would be paid within the statutory time period of 30 days from the date of approval by members at the AGM.