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LVB Directors voted out by part of promoter group, institutions, public
Chennai/Mumbai, Sep 27 - Even as shareholders of Lakshmi Vilas Bank voted out a majority of the board members, including promoter K.R. Pradeep, the voting pattern, as per the regulatory filing, shows some interesting aspects.
At the bank's annual general meeting, held on September 25 via video conferencing, the shareholders also voted against the resolution for the appointment of statutory and branch auditors.
In case of the appointment of seven directors, 19 per cent of the votes polled belonging to the promoter/promoter group were against but the remaining 81 per cent in favour.
As per regulatory filing, there are 25 shareholders under the category promoter and promoter group.
The public institutions (99 per cent votes cast) and public non-institutional shareholders (62 per cent votes cast) voted against the resolutions for appointment of directors and auditors.
The shareholders had also voted out Interim Managing Director and CEO S. Sundar, who was appointed in January this year.
The directors who would cease to hold the post after the rejection are N. Saiprasad, Gorinka Jaganmohan Rao, Raghuraj Gujjar, Pradeep, B.K. Manjunath and Y.N. Lakshminarayana Murthy.
In the case of appointment of Independent Directors (Shakti Sinha, Satish Kumar Kalra and Meeta Makhan), raising of additional capital, borrowing limits and for amendment of Memorandum of Association for increasing the authorised capital, the votes cast in favour were almost 100 per cent.
People in the know of things said that the shareholders' decision shows their unhappiness regarding the management of the bank which has off late been going through financial woes.
The development comes at a time when the bank is going through a tough phase and is in talks for a merger with Clix Capital.
In a regulatory filing on September 15, the company said that the mutual due diligence with Clix Capital is "substantially complete", and the parties are in discussions on the next steps.
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