EGM to appoint new NDB Bank Chairman shot down by shareholders

The NDB Bank board yesterday cancelled the Extraordinary General Meeting (EGM), which was to be held to amend the bank’s Articles of Association concerning the appointment of a chairman and independent directors.

“ A s s e v e r a l m a j o r shareholders have intimated their intention to vote against the proposed resolution, the board is of the opinion that the bank would fail to obtain the requisite approval,” NDB Bank Director/ CEO Rajendra Theagarajah said in a stock exchange filing. Therefore, he said that the EGM has duly been cancelled.

The EGM was to be held this Wednesday to amend Article 49, which stipulates that an independent director must be voted in as the chairman, and Article 36 (iii), which determines the criteria for an independent director, including not holding over one percent of the shares in the bank. Former Hayleys Chairman N.G. (Tanky) Wickremeratne currently operates as Chairman of NDB Bank, while the Softlogic group’s Ashok Pathirage, who owns 6.66 percent of NDB Bank shares directly and through the Softlogic group, is Deputy Chairman.

The Sri Lankan government is the largest shareholder of NDB Bank, owning 33.47 percent of the shares through state enterprises and public funds. A combination of highnet- worth individuals and foreign investment funds makes the top shareholders of the bank.