In an unusual development , the shareholders of realty major Unitech on Thursday rejected management's decision for dividend payment at 5% of share's face value, totalling about Rs 30 crore for the fiscal 2010-11 . 

The company had earned a net profit of Rs 567 crore in the last financial year. "The shareholders did not approve the resolution for declaration of dividend on equity shares for the financial year ended March 31, 2011," the company told the stock exchange. In May, the board of directors had recommended a dividend of Rs 0.10 per share of face value of Rs 2 each for 2010-11 and the proposal was taken up for shareholders' approval at annual general meeting on Thursday. The company said apart from the resolution for the payment of dividend, the shareholders passed all other resolutions . 

As on June 30, promoters hold 48.57% stake in Unitech and the rest 51.43% is with public. 

It is a rare occasion when shareholders reject proposals like dividend payment, which are taken up as 'ordinary business resolutions' . A senior company official said the board had proposed to pay about Rs 30 crore as dividend but shareholders felt that the company should rather utilize the fund for business purposes , considering the current scenario of high interest rate. They felt that the company should use the fund to reduce its debt liabilities, the official added. However, a shareholder, who did not want to be quoted, said as the dividend payout was very small against the profit, they decided to oppose the resolution. (Times of India)