CLB stays Federal Bank poll

ICICI Bank nominee voted out after marathon annual general meeting.

It had all the ingredients of a thriller. First, there were the titans of the banking and finance sectors led by ICICI Bank battling to enter the boardroom of the small but combat-happy Federal Bank. Then a marathon annual general meeting (AGM) that started yesterday and wound up at 3 in the morning today.

At the end of it all, the Company Law Board (CLB) stepped in, staying the appointment of new directors to the Federal Bank board, adding a new twist to the drama over the control of the Aluva-based private sector bank.

ICICI Bank moved the CLB, seeking the stay order. The bank, which holds a 20.44 per cent stake in Federal Bank, was allegedly denied the right to exercise its full voting rights in the eventful AGM on Monday even though the CLB, Chennai, on September 24 had directed the chairman of the AGM to allow ICICI Bank to exercise its full voting rights.

ICICI Bank moved the application ex-parte as it was allegedly allowed to use its voting rights to the extent of 2,670,000 shares even though it holds 4,532,400 shares in Federal Bank.

The CLB order, signed by KK Balu, said all resolutions which were put to vote at the AGM by way of a poll would not be implemented until the disposal of the order.

Federal Bank was given time till October 7 to respond to this and ICICI Bank till October 15 for its rejoinder to Federal Bank's response. The case will come up for hearing on October 18.

When contacted, Federal Bank Chairman KP Padmakumar told Business Standard: "I am not aware of any such development. In case this has