SKS Microfinance refuses board seat to Vikram Akula

HYDERABAD: SKS Microfinance has denied a board seat to its founder Vikram Akula, who was nudged out in 2011 after the microfinance company plunged into losses, saying that under its charter minority shareholders have no right to nominate directors.

On Sunday, SKS Trust Advisors— the sole trustee of five mutual benefit trusts of self-help groups borrowing from the microfinance company—sought a berth on the board for Akula as its representative. “The company states that under its articles of association, no shareholder has any right to nominate a director,” SKS Microfinance said on Tuesday.

“All requests for appointment as director are required to be made in accordance with the Companies Act and the articles of association of the company and will be processed in accordance with the law.”

Minority shareholders are entitled to move the Company Law Board to seek greater participation in the affairs of a company. However, the Company Law Board has the final say on whether the stakeholder should be given a board berth or not. Meanwhile, venture capital firm WestBridge II LLC informed the stock exchanges that it has agreed to buy a 1.48% stake in SKS Microfinance from Mauritius Unitus Corporation on September 17.

This will help West-Bridge to raise its stake in SKS Microfinance to 4.33%.