SKS Microfinance shareholder alleges irregularities in AGM

Mumbai: SKS Trust Advisors, one of the largest shareholders of SKS Mircofinance, today asked market regulator Sebi to recount votes cast at the micro-lender’s annual general meeting, alleging irregularities with regard to proxy votes.

“We would like to bring to your notice that our authorised representatives had observed that the register of proxies was not produced by the company for inspection as requested by the shareholders…,” SKS Trust Advisors wrote to Sebi.

SKS Trust also alleged that proxies submitted by some entities were not duly authorised and its complaint regarding the alleged irregularities was not taken note of by the micro- finance firm, said the letter, copy of which is with PTI.

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[caption id=“attachment_1265059” align=“alignleft” width=“380”]  The office of SKS Microfinance in the southern Indian city of Hyderabad. Reuters[/caption]

“We request for the re-verification of the proxies or authorisation letters pointed out by our authorised representatives and order for recounting of the votes cast by the valid members/authorised representatives/proxies in the presence of representatives of SKS Trust,” the letter said.

It also requested Sebi to intervene and direct the company not to announce the results of polling process pending an independent enquiry. “In view of this, we would appreciate if you can direct the company to withhold of the poll results till an independent enquiry is conducted to verify the true facts and a recount of the valid votes cast by proxies is ordered,” the letter said.

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According to a BSE filing by SKS Microfinance, the AGM (annual general meeting) was held Tuesday.

When contacted, a spokesperson of SKS Microfinance said the annual general meeting, including the voting process, had been conducted as per rules.

“Entire AGM including voting process has been conducted as per extant rules and regulations,” he said.

Vikram Akula, the founder of SKS Microfinance who ceased his association with the company in 2011, is involved in a bitter corporate battle with the micro-finance firm in the recent time.

Akula, who was forced to leave after a majority of his senior executives turned against him, is trying to re-enter the company with the support of SKS Trust, which is gone on to become a major stakeholder in the company.

While SKS Trust and some other stake holders support a board position for Akula and have unsuccessfully proposed that earlier, the present management is against the induction.

PTI