Manju Agarwal resigns from CMS amid criticism over 'selective preoccupation', stepped down from Paytm Bank Board earlier
SBI deputy managing director Manju Agarwal from the board of CMS Info Systems has brought to light the troubles faced by independent directors juggling multiple board positions. Agarwal's decision to step down from CMS Info Systems came around the time of her resignation from Paytm Payments Bank Limited (PPBL), where she served as an independent director, according to a report by Economic Times.
Agarwal, who previously resigned from her position as an independent director of PPBL, sought reappointment in CMS Info Systems, another company where she served as a director. However, her decision to seek reappointment faced criticism due to her jumping the ship from PPBL and accusations of selective "preoccupation." As a result of this criticism, Agarwal ultimately resigned from the board of CMS Info Systems just before the conclusion of the postal ballot voting on her reappointment, on March 1, as per the ET report.
The series of events suggested that Agarwal's attempt at reappointment faced scrutiny and ultimately led to her resignation from the board of CMS Info Systems. The timing of Agarwal's departure from PPBL, which clashed with the Reserve Bank of India's (RBI) ban on Paytm Payments Banks Limited, raised eyebrows among corporate governance experts and proxy advisory firms.
While Agarwal cited "personal commitments" as the reason for her resignation from PPBL, her continued presence on the boards of eight other companies, including listed entities like Glenmark Life Sciences and Polycab India, drew scrutiny, the report added. Proxy advisory firm Stakeholders Empowerment Services (SES) questioned Agarwal's selective approach to her "personal commitments," arguing that her resignation from PPBL carried little weight as
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