Chennai, Sep 30 (IANS) With the shareholders of the Kerala-based small private sector Dhanlaxmi Bank overwhelmingly voting out Managing Director and CEO Sunil Gurbaxani, a Committee of Directors (CoD) will manage its affairs, said a source on Wednesday.
“Till a new Managing Director and CEO is appointed, a CoD will manage the day-to-day affairs of the bank. The process of the search of new CEO will start in a week’s time. A search committee will be set up for the purpose,” the source told IANS.
Earlier in the day, the shareholders of Dhanlaxmi Bank voted out Gurbaxani at the annual general meeting (AGM).
Gurbaxani was been appointed as Managing Director & CEO of the Bank for a period of three years with effect from February 27 this year.
The ordinary resolution moved for Gurbaxani’s appointment was defeated, with 90.49 per cent of the votes polled against the proposal, as per the regulatory filing.
Only 9.51 per cent of the votes polled were in favour of his appointment.
Out of the 10 resolutions moved at the AGM, the shareholders had passed nine and defeated one.
This is the second private bank where the shareholders have voted against the appointment of the Managing Director and CEO in recent days.
On September 25, the shareholders of Lakshmi Vilas Bank (LVB) had voted out seven directors, including the Managing Director and CEO, in the AGM.
Following that, a three-member CoD was formed to manage the affairs of the bank.