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ICICI Bank CEO and Managing Director Chanda Kochhar, who is on leave pending a probe into alleged irregularities in the sanctioning of loans, is unlikely to attend the Annual General Meeting of ICICI Securities.
Kochhar, who is the Chairperson of the board of directors of ICICI Securities, is up for reappointment as a director at the company’s AGM on August 30.
“Since going on leave in late June, she has stayed away from board meetings and other functions at ICICI Securities as well as other group companies. The board will nominate some other person to chair the AGM,” said a person familiar with the development.
It is possible that either Shilpa Kumar, Managing Director and CEO of ICICI Securities, or Ajay Saraf, Executive Director of the company, who are whole-time directors on the board, could chair the meeting.
Since going on leave, Kochhar is understood to have not attended the company’s board meeting on July 23, which approved the first quarter financial results.
A routine matter
Sources also said the proposal for reappointment of Kochhar to the board of directors of ICICI Securities is a purely routine matter and is the Chairperson from the side of the promoter, ICICI Bank.
“She is eligible for reappointment as a director under the rules. The investigation into allegations is still underway. So, it would be incorrect to not consider the proposal,” said a second source, adding that not considering the proposal would mean that she is removed from the board.
“A decision will be taken by the shareholders,” he added. ICICI Securities declined to comment to an e-mail questionnaire by BusinessLine on the issue.
According to the website of ICICI Securities, apart from being the Chairperson of the board of directors, Kochhar is also a member of the Nomination and Remuneration Committee of the board.
A veteran banker, she is also a director on the board of other group companies, including ICICI Lombard General Insurance, ICICI Prudential Life Insurance Company, ICICI Prudential Asset Management Company and ICICI Bank Canada.
Kochhar has been on leave since late June this year while an independent investigation by a panel headed by former Supreme Court Judge Justice BN Srikrishna looks into allegations against her of corporate misconduct and quid pro quo in giving loans to the Videocon Group.
Proxy advisory firm Institutional Investor Advisory (IiAS) has asked shareholders to oppose her re-appointment to the board of ICICI Securities, while other experts are divided on the issue.
On Thursday, the company’s scrip gained 0.06 per cent on the BSE to close at ₹322.85 apiece.
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