"All small shareholders of the company voted against the resolution at the extra-ordinary general meeting (EGM)," a company official told PTI. The EGM approved the resolution to continue the services of R S Pawar as managing director of the Rs 430 crore company for another term.

The agitated shareholders, mainly the employees of NIIT, told the board of directors of the company, that there was no need to allow FIIs to increase their stake as the share prices of the company are currently ruling at low levels.

NIIT prices are ruling at Rs 1430-1450 levels as against the 52-week high of Rs 1764. The EGM decided to consider the proposal again at a later stage when the stock market picks up. "I'll approach you again with this proposal once the prices become attractive," chairman, Shiv Nadar toldshareholders and withdrew the resolution.

"The shareholders decided to wait for the opportune time before giving the nod for FIIs to raise their stake," the official said here immediately after the EGM. The EGM also discussed NIIT's plan to issue American Depository Receipts (ADRs) as part of its move to acquire software firms in the United States.

The company mooted the resolution to hike FII holding after receiving requests from its present FII holders and some prospective ones to enable wider participation and higher liquidity. Earlier, moving the resolution Nadar said an increase in foreign equity would bring NIIT valuations closer to global norms for similar organisations.

Nadar, managing director R S Pawar and CEO Vijay Thadani hold 60 per cent stake in the company, while FIIs hold 24 per cent. The remaining stake is being held by retail shareholders including 1100 NIIT employees and other Indian financial institutions like Unit Trust of India.

A company spokesman said today's decision towithdraw the resolution has set a new example in transparent corporate governance with the board responding positively to the shareholders' demand.

The EGM also discussed company's plan to issue American Depository Receipts as part of its move to acquire software firms in the United States.