The Hindu Business Line : HC voids AGM proceedings of Tamilnad Mercantile Bank

THE Madras High Court has declared as null and void the entire proceedings of the last annual general meeting of the Tamilnad Mercantile Bank, held on December 24, 2004 in Tuticorin.

The court, which heard a contempt petition filed by the Tamilnad Mercantile Bank Shareholders Welfare Association, ordered: "All the proceedings held on December 24, 2004 in the annual general meeting are declared to be null and void."

The petitioner had contended that the proceedings at the AGM were conducted "in violation of the court's order dated December 23, 2004," which said categorically that all the duly authorised proxies of the members of the bank, whose names appeared in the register of members should be allowed to attend the AGM and vote. However, the Chairman of the bank, Mr S. Radhakrishnan, refused to permit such proxies to attend and vote at the meeting, the petitioner alleged.

Mr Justice S. Ashok Kumardirected the bank "to conduct a fresh annual general meeting within eight weeks from the date of receipt of a copy of this order by following all legal formalities and allowing only those whose power of attorney has been registered in the Registrar's Office ."

At the AGM held on December 24, 2004, shareholders approved a dividend and voted on the appointment of three directors to the board, apart from passing a slew of other resolutions.

Apart from approving the accounts for 2003-04, other resolutions included enabling the bank to take up marketing of insurance products and entering into para-banking and allied activities such as hire purchase and finance.

The shareholders had also approved the appointment of the Chairman and Chief Executive Officer of the bank, Mr Radhakrishnan, for a two-year period from November 2004.

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