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The Company Law Board, Chennai, on Thursday ordered Federal Bank to take into account ICICI Bank's voting for its entire stake in the Kerala-based bank at the annual general meeting held in September 2004.
Following this, ICICI Bank's two nominees will be inducted in the Federal Bank board.
ICICI Bank's nominees P H Ravikumar, the executive director of the National Commodities and Derivatives Exchange, and Professor A M Salim, will be considered elected to the Federal Bank's board of directors following the CLB order.
The two-member CLB bench, comprising chairman S Balasubramanian and member KK Balu, also upheld ICICI Bank's plea that KP Fabian, one of the nominees, was ineligible to contest the election to Federal Bank's Board as he was already a board member in Syndicate Bank.
Fabian, a son-in-law of Federal Bank founder K P Hormis, had been declared elected at the Aluva-headquartered bank's AGM on September 27, 2004.
Though ICICI Bank held a 20.44 per cent stake in Federal Bank, the votes for only 12 per cent (equivalent of 2.6 million votes) were taken into consideration by Federal Bank chairman and managing director KP Padmakumar, who was acting as the chairman for the AGM.
CJ George, managing director, Geojit Securities, was also found to be ineligible to contest the elections to the board, as his nomination did not come through the Federal Bank's board of directors then.
George, however, had stepped down from the Federal Bank board after ICICI Bank received a stay on the resolutions passed at the AGM.