The shareholders of Lakshmi Vilas Bank voted against the reappointment of seven directors to its board, including Managing Director and Chief Executive Officer (CEO) S Sundar. The shareholders voted against the reappointment of N Saiprasad (promoters), K R Pradeep and Raghuraj Gujjar as non-executive and non-independent directors and B K Manjunath, Gorinka Jaganmohan Rao and Y N Lakshminarayana Murthy as non-executive and independent directors.
The shareholders also voted against the resolution for the appointment of branch auditors. The voting was carried out via videoconferencing at the bank's annual general meeting (AGM) on September 25.
According to the exchange 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 development comes when the bank is undergoing a challenging phase and is in talks for a merger with Clix Capital.
Meanwhile, the bank said its liquidity position remains strong. The lender also said that it has a fully functional board despite the rejection of seven directors by shareholders.
"Certain news items have appeared, expressing concerns about governance of the bank. Based on voting results of the 93rd Annual General Meeting, reappointment of seven directors was not approved. However, the bank continues to have a fully functional Board of Directors including three independent directors," Lakshmi Vilas Bank said in a statement.