Dhanlaxmi Bank shareholders reject appointment of statutory auditors

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October 01, 2021 8:13 AM

The shareholders also rejected the resolution of authorizing the board of directors to appoint and fix the remuneration of branch auditors.

dhanlaxmi bankShareholders 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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