The board of Bank of Rajasthan (BoR) has failed to resolve the imbroglio over extra-ordinary general meeting (EGM) and has referred the issue to the Reserve Bank of India (RBI).
The BoR board had met on Thursday, but failed to draw a unanimous conclusion on the legal binding of the EGM. The meeting was conducted on Monday by some share holders to approve the ICICI Bank-BoR merger proposal without the participation of the BoR management.
?There were too may divergent views on the issue among the board members .The board thought it is better to refer the matter to RBI. And took a decision to forward the ?papers? of the proposed merger to the RBI to take a call on the validity of the voting process,?? said G Padmanabhan, managing director of BoR.
A source pointed out that Fox & Mandal, the legal adviser to BoR, had also rejected the legal validity of the EGM, which was held by the BoR shareholders in the absence of the bank management. According to the source, at most the RBI may ask the bank to call for a fresh EGM to approve the ICICI-BOR merger proposal.
BoR management had summarily called off the scheduled Monday EGM citing a stay by a Kolkata civil court, which ICICI Bank got vacated. The shareholders of BoR, who had conducted the EGM, had communicated their decision to the stock exchanges, saying the ?scheme of amalgamation has been duly passed by the required majority.?
However BoR management had maintained that they would accept EGM?s decision and approach stock exchanges only after getting the decision legally validated.