Madras HC asks RBI,TMB MD to take routine decision

The Madras High Court has permitted two nominees of the Reserve Bank of India (RBI) and the Managing Director of Tamil Nadu Mercantile Bank to take decisions on the banks’ day-to-day administration and barred other members from participating in meetings till the case is disposed of.
Passing an interim order in a case involving transfer of shares and election of board members of the TMB yesterday, Justice V Ramasubramanian said the truncated board should not take any policy decision till the applications were disposed of.
The court also permitted the RBI nominees and the MD of the bank to pass necessary resolution regarding shifting of the bank’s Mount Road branch.
The dispute pertains to transfer of shares and election of board of directors, and other routine items of business taken up in agenda for the bank’s 83rd, 84th and 85th annual general meetings (AGMs).
As per the court order the resolutions passed in the three meetings in respect of routine business (other than transfer of shares and election of the board of directors) could be implemented.
Justice R Balasubramanian, a retired High Court judge appointed by the Court to chair the three AGMs, had filed his reports in three sealed covers.
The judge said since it appeared that there was a likelihood of a change in the composition of the board of directors, it was not possible for the existing board to continue till the hearing of the applications.
The applications along with the civil suit have been posted for hearing on June 16.
www.business-standard.com/

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