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Dhanlaxmi Bank's board appoints 3-member committee after shareholders oust CEO

The committee of directors includes G. Subramonia Iyer as chairman and G. Rajagopalan Nair and P.K Vijayakumar as members, Dhanlaxmi Bank said in a regulatory filing

twitter-logoBusinessToday.In | October 1, 2020 | Updated 22:24 IST
Dhanlaxmi Bank's board appoints 3-member committee after shareholders oust CEO
Dhanlaxmi Bank has appointed a three-member committee of directors

Kerala-based private sector lender Dhanlaxmi Bank on Thursday said that its board has appointed a three-member committee of directors (CoD) to manage its business affairs after shareholders on Wednesday voted out managing director and CEO Sunil Gurbaxani. The committee of directors will include G. Subramonia Iyer as chairman and G. Rajagopalan Nair and P.K Vijayakumar as members, the bank said in a regulatory filing.

At the 93rd Annual General Meeting (AGM) of the bank held on September 30, 2020, the resolution for appointment of Sunil Gurbaxani as managing director & CEO was not approved by the shareholders, with 90.49 per cent voted against him. Gurbaxani was appointed for a period of three years with effect from February 2020.

The bank said that the Reserve Bank of India (RBI), as requested by the board of directors, has approved an interim arrangement for formation of a committee of directors to exercise the powers of managing director and CEO till new appointment.

"As advised by RBI, the interim arrangement will not continue beyond four months within which the bank will complete the process of identification and appointment of a new MD and CEO," Dhanlaxmi Bank said in a BSE filing.

This happens to be second incident in recent past when where the shareholders have voted against the appointment of the managing director and CEO of the bank. On September 25, private lender Lakshmi Vilas Bank's shareholders had voted out seven directors, including the Managing Director and CEO, in the AGM.

In a separate development, the shareholders of the bank, at the AGM held on September 30, have approved the resolution for increasing the authorised share capital of the lender from Rs 300 crore to R 400 crore, subject to regulatory approval.

Meanwhile, shares of Dhanlaxmi Bank closed Thursday's trade at Rs 12.40, up 0.57 per cent, against previous closing price of Rs 12.33 on the BSE.

By Chitranjan Kumar

Also Read: Dhanlaxmi Bank shareholders vote out CEO Sunil Gurbaxani

Also read: RBI approves panel of 3 independent directors to run Lakshmi Vilas Bank

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