Chanda Kochhar elected on the board of ICICI Securities
ICICI Bank, which controls 80% of the stake in ICICI Securities, on Thursday voted in favour of having their (LOA) chief Chanda Kochhar on the board of ICICI Securities.
Kochhar, Managing Director & Chief Executive Officer & of ICICI Bank, was earlier sent on leave as the lender launched an independent investigation into the accusations of conflict of interest in the bank advancing large loans to the Videocon group, which allegedly had some relationship with the private lender.
Not too long back the private lender had put jeopardized itself by proposing the name of Kochhar for the board position.
Chanda Kochhar elected on the board of ICICI Securities
For the present the vote almost seals her position as director at the broking firm. Needless to say ICICI Bank holds a majority 80 per cent stake which translates to a 80% vote in favour (if not more).
Corporate governance activists like InGovern have been watching these developments closely. Earlier Shriram Subramanian of InGovern has questioned about money still being sent to Kochar on leave.
Subramanian said ICICI Bank has placed itself in a problematic position by recommending Kochhar’s name. “As she was sent on leave, how can she attend board consultations?” he asked.
US-based proxy firm Glass Lewis had also stated the simple fact that she (Kochhar) has been forced to take leave may be illustrative of serious lapses in power that carry reputational risks which may undesirably impact the company
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Source : The Economictimes
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