Infy AGM approves raising FII limit to 100%

BANGALORE: The 21st Annual General Meeting (AGM) of Infosys held in Bangalore
was chaired by Senator Larry Pressler, independent member of the Board at
Infosys.



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 per cent to 100 per cent of the paid-up equity share capital of the
company.



The members also approved the appointment of Claude Smadja as an independent
member of the board of Infosys. The board proposed a final dividend of Rs12.50
per share (250 per cent on par value of Rs 5) on April 10, 2002 and the members
in the AGM approved the same. The said dividend would be paid to all the members
of Infosys whose name appears in the register of shareholders as of May 24,
2002.



Effective from April 1, 2002, the dividend income is proposed to be taxed in the
hands of the shareholders and, accordingly, is subject to deduction of 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 15G, 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 me