Proxy advisory firm InGovern raises related-party issues at Asian Paints

Company says the audit committee has a majority of independent directors, and the promoter director does not participate in the meeting during discussions on related-party transactions

The Dani family, one of the promoters of India’s largest paint firm — Asian Paints — has come under fire from proxy advisory firm InGovern after the latter pointed out several related party transactions between Asian Paints and Paladin Paints & Chemicals, a private company owned by the Danis.

“A lack of detailed disclosure and intent of procuring such a high percentage from companies, including Paladin — that are owned by promoters of Asian Paints — is strange. For example, in 2019-20, Asian Paints procured over 5.8 per cent of its raw material from companies controlled by promoters. Paladin itself