Tag: Kerala high court

Dhanlaxmi Bank shareholders reject appointment of statutory auditors

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Shareholders approved the ‘Profit &Loss Account’ for the year ended and the re-appointment CK Gopinathan as a director.

Shareholders of Dhanlaxmi Bank have rejected the appointment of statutory central auditors in the annual general meeting (AGM) held on Wednesday, the bank said in a regulatory filing. Incidentally, the Kerala High Court has refrained the bank from concluding the AGM and has adjourned it to a day after one month from September 29th.
The shareholders also rejected the resolution of authorizing the board of directors to appoint and fix the remuneration of branch auditors.

In a show of strength and defiance to the current board, the shareholders passed two resolutions while voting against the other two. Shareholders approved the ‘Profit &Loss Account’ for the year ended and the re-appointment CK Gopinathan as a director.

According to the regulatory filing, 65.44% of the shareholders present in the AGM voted against the proposal to appoint P B Vijayaraghavan & Co, Chartered Accountants, as statutory auditors and appointment of branch auditors.
The order by the HC came following a writ petition filed by KN Madhusoodanan, a shareholder of the company, P Mohanan and Prakash DL, seeking a direction to the respondents — the RBI and Dhanlaxmi bank — to discharge their statutory responsibilities under Section 160 of the Companies Act to inform the members about the candidature of the petitioners for the office of the director as mandated under Section 160(2) of the Companies Act.
Sherry Samuel Oommen, a corporate lawyer, told FE that it would have augured well for the shareholders of Dhanlaxmi to adjourn the AGM in its totality.

“The Ministry of Corporate Affairs in a circular in 1974 had permitted companies to adjourn the AGM where accounts were not ready for laying at the concerned AGM. Perhaps, in the interests of the public, the matter concerning adoption of accounts and appointment of auditors could have been adjourned to the ensuing AGM. I am quite certain that this matter would be further litigated in the next month,”he added.

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Kerala High Court asks Dhanlaxmi Bank to adjourn AGM

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The petitioners had to move their candidature under Section 160 of the Companies Act after the board decided to defer their candidatures.

The Kerala High Court on Wednesday directed Dhanlaxmi Bank to refrain from concluding the annual general meeting scheduled for Wednesday (September 29). The single bench of the high court gave an interim order directing the bank to adjourn the AGM to a day after one month after transacting the businesses included in the agenda for the meeting.

The order by Judge PB Suresh Kumar came following a writ petition filed by KN Madhusoodanan, a shareholder of the company, P Mohanan and Prakash DL, seeking a direction to the respondents — the RBI and Dhanlaxmi bank — to discharge their statutory responsibilities under Section 160 of the Companies Act to inform the members about the candidature of the petitioners for the office of the director as mandated under Section 160(2) of the Companies Act.

The board of the bank arbitrarily rejected the applications of all five candidates, including prominent shareholder Ravi Pillai (B Ravindran Pillai) and former independent director PK Vijayakumar, filed under Section 160 of the Companies Act, a highly-placed source told FE. The petitioners had to move their candidature under Section 160 of the Companies Act after the board decided to defer their candidatures.

“The HC interim order has upheld the importance of shareholders in appointing directors. The bank rejected applications without any valid reasons. The AGM is supreme for any company, including banking company. Some of the directors who came to that position with the votes of majority shareholders are now behaving as if they were made directors by some other authority, and not by shareholders. The interim order of HC is an eye opener for all who try to belittle importance of shareholders in the administration of any company,” PK Vijayakumar said.

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Lookout notice in bank fraud case, BFSI News, ET BFSI

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Thrissur: Crime branch team probing the scam in Karuvannur Cooperative Bank has initiated steps to issue lookout notices against six accused in the case. According to the crime branch sources the requests for issuing the lookout notices have been submitted to emigration authorities so that the accused can be prevented from going abroad. There are reports that one of the accused has already gone abroad.

The crime branch team has started collecting the details of the assets of the accused in the fraud. According to preliminary estimates the bank has incurred a loss of over Rs 100 crore in the scam. Authorities said the properties of the accused would be auctioned to recover part of the lost amount.

Three of the accused have filed their anticipatory bail applications at the principal district and sessions court.

M Biju Kareem, the bank manager and C K Jilse, the accountant, and Reji Anilkumar, an employee at a supermarket run by the bank, had filed their bail applications soon after the fraud was exposed last month.

The bail application came up for hearing on July 21 and the prosecution has been asked to file its response. The petition is likely to come up for hearing on August 6.

The probe team has been facing criticisms from Congress and BJP over the delay in the arrest of the accused.

They have been alleging that the probe team has been trying to protect the fraudsters because of their links with CPM.

The investigators have refuted the allegations, saying that they have been making all efforts to book the accused.

Can cops be faulted for pursuing accused: Court

The high court on Wednesday asked whether police can be faulted for pursuing the accused in the bank fraud case.

Justice K Haripal made the statement while considering an anticipatory bail plea filed by TR Sunil Kumar, secretary of Karuvannur bank and the first accused in the case. He had contended that he did not have a significant role in allowing loans and that his custodial interrogation is not required.

During the hearing, the applicant’s counsel submitted that the pre-arrest bail plea should be heard as early as possible as the applicant has been made an accused and police have following him around. The court asked how can the police be faulted for following an accused.

The applicant had contended that he was removed from the loan-sanctioning section on December 5, 2019 after department of cooperation began an enquiry into some alleged irregularities at the bank.

As the secretary, he has very limited role in sanctioning loans and it is the governing body that considers the applications and sanction loans, the petition said. It is due to the lapses on the part of the governing body that a probe was required and the banks employees have no part in it, the applicant said. The court will hear the case in detail on August 9.



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