SKS Microfinance is likely to take a call next week on the extraordinary general meeting (EGM) to get the nod of shareholders for removing sacked Chief Executive Officer (CEO) and Managing Director (MD) Suresh Gurumani from the post of directorship.
SKS is in consonance with Gurumani’s removal as CEO and MD. “The October 4 board resolution terminated Gurumani as CEO and MD. However, it is a matter of fact that Gurumani is still a director on the board,” said SKS Executive Vice-President Atul Takle. Gurumani will be part of the company’s board till the EGM approves his termination.
On October 4, SKS informed stock exchanges that its board had passed a resolution terminating the appointment of Gurumani as managing director and CEO, and “withdrawn all powers and authorities granted to him or otherwise enjoyed by him in the company as managing director and chief executive officer of the company, with immediate effect”.
Yesterday, the Andhra Pradesh High Court ruled that Gurumani could continue as a director of the company. The court said the newly-appointed CEO, M R Rao, should not take any major policy decision concerning SKS Microfinance without prior approval of the board of directors, until further orders.
On reports that the Securities and Exchange Board of India (Sebi) was unhappy with the response of SKS Microfinance to its letter seeking information on the sacking of Gurumani and resignation of independent director Ashish Lakhanpal, the company maintained it would not discuss board resolutions in public. “We have replied in original to Sebi. There is no further communication from Sebi in this regard,” he said.
He said Lakhanpal was only an investor director, representing Kismet Capital, which had invested in SKS. He was never an independent director, he claimed.
Lakhanpal was stated to have tendered his resignation, so that the board composition complied with the requirements of listing agreement, in connection with the prescribed ratio for independent and non-independent directors.