The Board of Directors of a Kerala-based Dhanlaxmi Bank has taken into consideration and approved to elect of J K Shivan as their managing director and CEO of the Bank. It may be recollected that the shareholders of the Kerala-based bank had voted out the MD & CEO, Sunil Gurbaxani On September 30, 2020. The lender appointed Shivan as the new MD & CEO in December that year. Nonetheless, the banking regulator, Reserve Bank of India (RBI), had implored the Dhanlaxmi Bank Board to get the approval of the shareholders before electing J K Shivan as the following chief of the bank.
RBI’s direction was unprecedented since the board commonly elects the candidate proposed by the regulator as an additional director and then seeks shareholders’ acceptance at the next AGM according to experts. In this case, the lender’s Board had walked a resolution on December 26, as asked by RBI, for shareholders’ acceptance using electronic voting, for Shivan’s selection for the post. The bank has walked a resolution for Kerala-based Shivan’s appointment and 105 members have pitch 63,322,890 votes, or 99.81 percent of the total, approving of the resolution, while there were a handful of 18 votes in oppose of the resolution or another word 0.19 percent of the total.
The resolution nominating Shivan has been ratified with the requisite majority. Dhanlaxmi Bank has already seen two of its MD-CEOs quit before their tenure post losing shareholder’s be beliefs in the past. The lender also had to go through a bad phase during the year 2008-2013 and was under the (PCA) Prompt Corrective Action bracket of the RBI for some time. Gurbaxani was overthrown from the post of MD-CEO by the shareholders with moreover 90 percent votes, outvoted his leadership on October 1, 2020, in the first AGM since his selection in February 2020.