Kerala High Court asks Dhanlaxmi Bank to adjourn AGM

The petitioners had to determination their candidature nether Section 160 of the Companies Act aft the committee decided to defer their candidatures.

The Kerala High Court connected Wednesday directed Dhanlaxmi Bank to refrain from concluding the yearly wide gathering scheduled for Wednesday (September 29). The azygous seat of the precocious tribunal gave an interim bid directing the slope to adjourn the AGM to a time aft 1 period aft transacting the businesses included successful the docket for the meeting.

The bid by Judge PB Suresh Kumar came pursuing a writ petition filed by KN Madhusoodanan, a shareholder of the company, P Mohanan and Prakash DL, seeking a absorption to the respondents — the RBI and Dhanlaxmi slope — to discharge their statutory responsibilities nether Section 160 of the Companies Act to pass the members astir the candidature of the petitioners for the bureau of the manager arsenic mandated nether Section 160(2) of the Companies Act.

The committee of the slope arbitrarily rejected the applications of each 5 candidates, including salient shareholder Ravi Pillai (B Ravindran Pillai) and erstwhile autarkic manager PK Vijayakumar, filed nether Section 160 of the Companies Act, a highly-placed root told FE. The petitioners had to determination their candidature nether Section 160 of the Companies Act aft the committee decided to defer their candidatures.

“The HC interim bid has upheld the value of shareholders successful appointing directors. The slope rejected applications without immoderate valid reasons. The AGM is ultimate for immoderate company, including banking company. Some of the directors who came to that presumption with the votes of bulk shareholders are present behaving arsenic if they were made directors by immoderate different authority, and not by shareholders. The interim bid of HC is an oculus opener for each who effort to belittle value of shareholders successful the medication of immoderate company,” PK Vijayakumar said.