Glass Lewis has recommended shareholders vote against the reelection of a member of Adani Enterprises' risk committee after a court criticized "unconscionable conduct" in its Australian port business
MELBOURNE (Reuters) - Proxy advisory firm Glass Lewis has recommended shareholders vote against the reelection of a member of Adani Enterprises' risk committee after an Australian court criticized "unconscionable conduct" in its Australian port business.
Adani Enterprises' Australian unit, Bravus Mining & Resources, has been involved in a controversial project to develop the Carmichael mine in Queensland to sell thermal coal into India, despite concerns about global warming.
But it was a decision by the Queensland Supreme Court that found the unit engaged in monopolistic business practices that prompted Glass Lewis' recommendation.
The Queensland Supreme Court issued a A$107 million ($80.7 million) judgment against Adani Mining in August last year, finding in favor of four companies that used the Abbot Point coal export terminal operated by Adani Enterprises.
"Given the judgment, the practices at Adani Mining reflect poorly upon business and risk management strategies from within Adani Enterprises, especially as the company had to inject funds into Adani Mining on an emergency basis to meet the judgment," Glass Lewis said.
Adani had no immediate comment on the Glass Lewis advice.
Glass Lewis rates Adani as having a "severe" risk of material financial impacts driven by environmental, social, and governance (ESG) factors.
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