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Tamilnad Mercantile board directors "disqualify" Essar group nominee
Our Bureau
CHENNAI, January 13: The Tamilnad Mercantile Bank (TMB) board of directors has disqualified the Essar group nominated director V Jeyachandran as he has "substantial interests in a financial services firm", which is against the Reserve Bank of India norms, a senior bank official said on Tuesday.The board decided this in its meeting on Saturday, in which neither Jeyachandran nor his alternate director T Shanmugam were present. The board has "informed Jeyachandran of its decision," the senior Tamilnad Merchantile Bank official added. The presence of Jeyachandran and another Essar nominee V Gopal Rao has also been challenged on another count — for not having acquired 500 shares within two months of being elected to the board as stipulated by the bank's articles of association and legal norms, said bank sources. The TMB official, however, said the matter was sub-judice, and as such Jeyachandran was disqualified only because of his conflicting interests. "If he were to reduce his stake in the finance firm,
his name could be considered for re-appointment," he added. On the 13-member board, there are currently three vacancies.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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