Home Insolvency & Bankruptcy Dhanlaxmi Bank director resigns; raises serious governance issues

Dhanlaxmi Bank director resigns; raises serious governance issues

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Dhanlaxmi Bank director resigns; raises serious governance issues

Impartial Director Sridhar Kalyanasundaram has resigned from the board of Dhanlaxmi Financial institution, alleging unethical conduct and irregularities by the financial institution’s administration and MD and CEO Shivan JK.

Kalyanasundaram alleges that his inputs have been intentionally ignored or overruled by different board members to help the MD and CEO. He additionally alleges that the financial institution’s administration is stifling discussions by different board members.

In a letter to the board of Dhanlaxmi Financial institution, the unbiased director, who was appointed in December 2022, mentioned that he had raised issues about a lot of points.

He says that the financial institution’s one-time settlement (OTS) scheme is getting used even in instances the place there are not any NPAs. He cites the instance of Jalan Inns of Kolkata, the place the OTS was used to launch a guarantor at a vastly discounted worth.

Kalyanasundaram additionally alleges that the Dhanlaxmi Financial institution administration has not taken any motion on quite a few whistle-blower complaints.

He has additionally identified the board’s unilateral arrogation of powers regardless of authorized recommendation on the contrary. The board’s refusal to refer a shareholder’s allegation that the MD & CEO’s appointment in 2021 was not with the intention to an adjudicating authority, regardless of the director’s recommendation.

The irregularities within the method that the board and committee conferences have been being performed, such because the MD & CEO and the corporate secretary deciding on the agenda and the frequency of the conferences with out session with the opposite administrators.

The director mentioned that his issues had been “brushed away” by the opposite members of the board, and that he had “no help” from them. He mentioned that he had “determined to resign moderately than struggle a lone battle,” and that he didn’t wish to be part of a gaggle that practiced the idea that “you may want such conduct away.”

The resignation of the unbiased director is a severe matter, and raises issues in regards to the governance and administration of Dhanlaxmi Financial institution. The financial institution ought to examine the allegations raised by the director, and take steps to deal with any points which are discovered.

Additionally See: NPA or default now not solely an issue of financial institution after IBC

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