Independent Director of Dhanlaxmi Bank resign over governance lapes
Private Sector Dhanlaxmi Bank recently announced that an independent director has resigned from the board. Mr. Sridhar Kalyanasundaram, Independent Director, in his resignation letter, has raised issues like factionalism in the board, issues related to a rights issue plan, capital enhancement plan, conduct of the bank’s board, probity and lack of consensus on the various ‘whistle-blower’ issues raised to the Directors and unethical conduct of bank’s business, unilateral arrogation of powers by the board despite legal advice and the alleged ‘lack of in depth banking knowledge’ in other members.
This comes after Ravindran Pillai, head of RP Group, who holds 9.99 percent stake in the bank (largest shareholder), came out with a special notice for removal of Kalyanasundaram. A resolution in this regard would be passed at the 96th annual general meeting (AGM).
As per Mr. Kalyanasundaram, there are many instances where despite the value of inputs given, my inputs have been deliberately negated / avoided / overruled by the other members of the board. It is just to support the belligerent attitude of the MD and CEO. He is on record (in the vernacular press) that he cares little about shareholders and the directors. I am not the only director to face his wrath for not towing his line. Many had left, rendering this board legally inconsistent with required composition.
Another issue he raised was the irregularities in the manner that the MD and the company secretary were conducting the Board and Committee Meetings deciding on the agenda and the frequency of the same, at both the meetings of the Independent Directors.
