Rift in Himalayan Bank as BOD rejects appointment of recommended Director from major shareholder

Published On: November 13, 2017 06:33 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Nov 13: Rift in Himalayan Bank has risen on the surface as the Board of Directors (BOD) of the bank has rejected the appointment of the Director representing one of the major shareholders of the bank.

Mutual Trading Company Private Limited that holds 11.85 shares of the bank had written a letter recommending the name of Prasad Gyawali to the company secretary of the bank on August 20. However, the BOD of the bank rejected the recommendation citing that the bank had already appointed seven members in the board as per new BAFIA act on September 18.

The bank, in its response, said that the BOD is unable to add or reshuffle the BOD after consulting the legal experts of the bank.

Following the reply from the bank, Mutual Trading Company, the fourth largest shareholder of the bank, demanded the special annual general meeting for the reshuffle of BOD and registered complaints at the Company Registrar Office on October 8. However, none of the authorized body has responded to the demand to date.

The company has indicated that the response from the bank is illegal and irresponsible and has informed that the bank has restricted the shareholders from exercising their basic rights.

As per the company act 2006 and Bank act, the bank should clearly make public announcement 15 days before regarding the date, place and issue but the bank did not respond to it, the company says. 

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