Mumbai: JM Financial Asset Reconstruction Company ((JMFARC) is under the radar after a few board-level exits at the company. Recently former chairman and managing director of Dena Bank and Bank of Baroda Anil Khandelwal resigned from the independent directorship of JMFARC.
This lack of media scrutiny comes despite Khandelwal’s lengthy resignation email (dated October 27, 2018) which provides sharp insight into the governance practices of a company from the prestigious JM Financial stable, a group known for its investment banking and advisory services to some of India’s biggest business houses.
As per the company’s FY’ 2018 annual report, the major shareholders are JM Financial (57.1 per cent), Narotam Sekhsaria (16.5 per cent) and nationalised banks such as Indian Overseas Bank, UCO Bank, Union Bank of India and Central Bank of India, who collectively own 14.5 per cent. Therefore, even though the company is unlisted (unlike the parent, JM Financial, which is listed), important developments in JMFARC are matters of public interest.
Khandelwal’s resignation letter is publicly available from the company’s filings with the Registrar of Companies, and should be mandatory reading for students of corporate governance. There are no niceties of resigning for “personal commitments” or having other more pressing “professional commitments”.
