ICICI Bank gets stay on Federal Bank AGM decisions from CLB

ICICI Bank gets stay on Federal Bank AGM decisions from CLB
Kochi, Sept 28 (PTI) In a day of fast developments, ICICI Bank, which received a set back in its attempt to get a berth on the Federal Bank Director's Board, approached the Company Law Board, Chennai, and got a stay on the seven resolutions put to vote at the Kerala-based bank's AGM till October 18.

After ICICI Bank nominee P H Ravikumar failed to get elected at Federal Bank's AGM, results of which were announced early today at 3 am, the Mumbai-bank approached the CLB, Chennai and procured a stay on all the seven resolutions put to vote at the meeting, ICICI Bank senior general manager, M N Gopinath, told PTI here.

The AGM had also voted against a proposal to increase the authorised capital of the Aluva-headquartered bank and to split the post of CMD to part-time Chairman and Managing Director.

"All the resolutions which were put to vote by way of poll at the AGM on Sept 27 shall not be implemented or given effect to until disposal of this application on Oct 18," Gopinath said quoting the order.

The Board had in an order on September 24 stated that the ICICI Bank should not be "prevented from exercising its full voting rights" of about 45 lakh shares held by it.

However, the Federal Bank chairman considered the voting right of the applicant only to the extent of about 26 lakh shares, which was prima facie not in accordance with the order of Sept 24 of this Bench, the order stated.

"In the circumstances, it is hereby ordered that all resolutions which were put to vote by way of poll should not be implemented or given effect to till the disposal of the application, the Board said.

ICICI Bank had pointed out that it was allowed only 12 per cent voting rights (equivalent of 26 lakh shares) at the AGM though it held 20.44 per cent stake in the Federal Bank.

Three nominees of the Federal Bank viz., C J George, Managing Director of the Geojit Securities, K P Fabian, former diplomat and son-in-law of K P Hormis, founder of the Federal Bank and P C Cyriac, former chairman of the Rubber Board emerged winners in a keenly fought election.

The election to the board of directors was held following retirement of three members -- A Parthasarthy, Prof A M Salim and M Joseph from the Federal Bank board.

A total of seven resolutions were put to vote.

UTI, HDFC and Kotak Mahindra were not allowed to exercise their voting rights, as their papers were incomplete, banking sources said.

The outcome of the AGM was keenly watched in Kerala as allegations had been raised against ICICI Bank that it was trying to take control over the Federal Bank though the Mumbai-based bank had been denying it.


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