Lyons Range members said yesterday that they will block resolutions pertaining to clearance of annual accounts for 2001-02 and 2002-03 at the two separate annual general meetings scheduled to be held today. | |
| The members said their decision to stall the AGMs was subject to a complete clarification from the management on how the shortfall, which arose owing to the payment crisis in 2001, will be adjusted against their contribution to settlement guarantee fund (SGF). |
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| They have also demanded a confirmation from the newly appointed administrator, T K Das, that their base minimum capital was intact. |
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| Worries that the two AGMs might turn out to be stormy intensified today after 120 members opposed the management's decision to meet the payment shortfall from the SGF. |
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| In a letter addressed to the administrator T K Das, the members said the adjustment of loss in SGF was "gross violation of bye-laws of the exchange." |
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| The letter follows a report of the special auditor, L B Jha & Co, which pointed out several discrepancies in utilisation of SGF by CSE to meet a payment shortfall in 2001. |
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| Quoting the report, CSE members asked Das to ensure that "no dubious or fraudulent trades were included while calculating total loss." |
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| The first one or the 79th proposed AGM will seek members' clearance for annual accounts for 2001-02. The next, 80th meeting, will take place immediately after closing of the market. |
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| In addition to an ordinary resolution on annual accounts for 2002-03, the 80th AGM would place a special resolution pertaining to demutualisation of the bourse. |
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| CSE officials said the bourse will not face any problem in case accounts were not be passed. "The management's responsibility is to prepare the reports. The onus of clearing , blocking or amending it lies with the members," they added. |
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| The members had adjourned the last AGM demanding a special audit to verify whether the SGF was utilised properly to meet the payment shortfall in 2001. |
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| This year, CSE took special permission from Registrar of Companies (RoC) to hold its AGM by December but failed to do so. |
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| Das was appointed administrator following supercession of the CSE board on December 4. He has been meeting brokers asking them to trade on CSE to turn the bourse around. The brokers who met Das complained the administrator had "little idea" of the functioning of a stock market. |
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