As many as 283 shareholders of the Bank of Rajasthan, including one of its founding members, moved the Company Law Board alleging that its merger with ICICI Bank was in violation of various regulatory norms.
The shareholders, including a founding member of BoR Radheshyam Agarwal, contended that the merger was finalised without getting proper nod of the investors and that the Extraordinary General Meeting on June 21 when the merger was approved was illegal.
The petitioners also claimed that the merger was in violation of market regulator SEBI's order that barred about 100 firms associated with Tayals, the promoters of BoR, from dealing in securities.
The CLB posted the matter for further hearing on September 14.
During the proceedings, senior advocate Rajiv Nayyar appearing for ICICI Bank submitted that the petition of the shareholders had become infructuous as BoR has been merged with ICICI.
To this, CLB Chairman Justice D R Deshmukh directed ICICI bank to file an affidavit stating the current status.
BoR was merged with ICICI Bank on August 12, following the approval of the Reserve Bank of India. As per the terms and conditions, 25 shares of ICICI bank were alloted for every 118 shares of BoR.
Company secretary S C Sharma appearing for the shareholders submitted that BoR's merger is without any force as many mandatory processes were bypassed by both banks.
The shareholders requested CLB to appoint officials to investigate the entire merger process, alleging serious legal violation of laws. They also requested the Board to seize BoR's record mishandled by the interested groups, including Tayal group, from being destroyed.
+1.jpg)
0 comments
Post a Comment