The shareholders of Lakshmi Vilas Bank have voted against the reappointment of seven directors to its board, including that of the MD and CEO, S. Sundar.
Sundar was appointed as the interim MD of the bank in January this year.
People in the know said that the shareholders' decision shows their unhappiness regarding the management of the bank which has off late been going through financial woes.
Interestingly, the shareholders in the bank's Annual General Meeting on September 25, also voted against the reappointment of its statutory auditors, the bank said in a regulatory filing.
The directors who would cease to be directors post the rejection are N. Saiprasad, Gorinka Jaganmohan Rao, Raghuraj Gujjar, K.R. Pradeep, B.K. Manjunath and Y.N. Lakshminarayana Murthy.
Out of the proposed 10 reappointments, Shakti Sinha, Satish Kumar Kalra and Meeta Makhan's directorship was accepted by the shareholders.
The development comes at a time when the bank is going through a tough phase and is in talks for merger with Clix Capital. In a regulatory filing on September 15, the company said that the mutual due diligence with Clix Capital is "substantially complete", and the parties are in discussions on the next steps.
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