Glass Lewis issued a controversy alert on Friday for Xiaomi (HKG:1810) shareholders ahead of the company's annual general meeting on June 5.
The alert relates to several issues, including investigations into the alleged illegal remittances made by the consumer electronics company's Indian subsidiary.
Xiaomi said the 55.1 billion Indian rupees in royalties were legitimate, but regulators said they violated foreign exchange and tax laws.
As of March, the company looks to settle and recover 47.04 billion rupees in frozen assets.
Moreover, Ukraine continues to list the company as an international war sponsor due to its operations in Russia.
Glass Lewis said the company looks to move the production to Kazakhstan due to possible sanctions from the US and European Union.
The company also faces consumer confidence concerns after an accident involving its SU7 electric vehicle model, as well as alleged employee abuse from forced overtime and retaliation against vacationing staff.
Glass Lewis points to the election of CEO Lei Jun as a relevant proposal in the annual general meeting, given possible flaws in board oversight and risk management.
The alert's rationale relates to relevant media coverage, potential material ESG risk, and egregious governance practices and falls under community and stakeholder relations, human capital management, ethics, and oversight issue.
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