TMB annual meet turns stormy

The 82nd annual general meeting (AGM) of the Tamilnad Mercantile Bank (TMB) commenced amid stormy, noisy proceedings with the Nadar Mahajana Sangam (NMS) strongly opposing the resolution on voting rights of choosing three new directors.

Of the 12 resolutions considered in the AGM, the crucial resolution was on the selection of three new directors as one-third of the board retire by rotation.

The Madras High Court observed the ruling that the 33 per cent stake, which can exercise the power of attorney, must have been registered with the Registrar of Companies and a true copy of the same should be submitted to the bank on 23 December.

The Tamilnad Mercantile Bank Shareholders Welfare Association had filed a writ in this regard with the HC. The HC had nominated P Karuppiah, principal district judge Tirunelveli, to be an observer on the proceedings, while the new chairman of TMB, S RadhaKrishnan, was appointed presiding officer of the AGM.

The NMS boycotted the poll on resolution of choosing new directors and other resolutions saying the chairman went against the ruling of the Madras HC.

The chairman, however, proceeded with the meeting saying that the 33 per cent power of attorney was registered with the bank and due legal advice was taken in this regard.

The results of the poll conducted are expected to known by tomorrow morning. This round of selecting directors is also seen to be in favour of Ramachandran Adityan, director, TMB. Adityan had earlier spearheaded the Nadar Mahajana Bank Share Investor Forum.

The NMS also complained that while the 114 shareholders of the bank were served the AGM notices, they were not allowed to participate in the meeting.

The resolution on 100 per cent dividend was also passed by majority of shareholders. Of the 11 directors contesting for the three seats, two will include present directors, V Bhaskaran and A Narayanan, contesting for reappointment.

C Sivasankaran, an NRI had transferred 33 per cent of his stake in the bank to seven members of the Nadar community, which includes Adityan, in February, 2004.

The previous 81st AGM held on March 12, 2004 witnessed the proceeding of the seven consecutive AGMs which were not conducted for the last seven years.

In the meeting, the controversial 33 per cent stake holders were allowed to exercise their votes by way of power of attorney among others to select the board of directors of the bank. Ten directors were chosen, of which five directors were from Adityan's family.

The RBI in its draft proposal few months ago said that not more than one member of the same family can be represented on a bank's board.

When asked about five members holding directors position in TMB from his family (which includes Adityan, his two sons and son in law), Adityan said the RBI proposal was still in the draft stage. "When the draft becomes a notification, we will take the necesary steps," he added.