 "SKS dashes Akula's hopes of comeback in board")
SKS Microfinance, the country's only listed micro-lender, on Friday said following a request from a select set of promoters, it has decided to "de-promoterise" them.
Mauritius Unitus Corporation, Sequoia Capital India, five mutual benefit trusts and Vikram Akula will no longer be considered as promoters of SKS Microfinance following this move.
This will also probably dent Akula's aspiration of regaining a seat on the board of the company he founded as a non-government organisation (NGO) in 1997. He had to step down as the chairperson of SKS Microfinance in 2011. While the micro-lender had not offered any explanation over his resignation, it is widely believed that a conflict between Akula and other board members over the running of SKS Microfinance led to his exit.
Akula has sold almost his entire stake in SKS Microfinance. At the end of March, 2014, he held only 10 shares in the company.
"Dr Vikram Akula does not have any special rights in the company through formal or informal arrangements except such rights that are available to every public shareholder of the company. Furthermore, none of the directors or key managerial personnel of the company have been appointed pursuant to any formal or informal arrangement (with) Dr Vikram Akula," SKS Microfinance said in a notice to the BSE.
"Dr Vikram Akula has informed the company through an e-mail dated April 24, 2014, that he is not a promoter of the company," it added.
While the five mutual benefit trusts together held 12.5 per cent stake in the company at the end of March, 2014, they also requested SKS Microfinance to exclude them from the promoter group.
"The mutual benefit trusts have asserted in (a) letter that, amongst other things, they lack the ability or right to exercise any control over the company and do not have any influence over the company's decision making. In view of the same, the mutual benefit trusts have asked the company to refrain, with immediate effect, from depicting the mutual benefit trusts as promoters of the company under the applicable laws," SKS Microfinance said.
In addition, the micro-lender said that Mauritius Unitus Corporation and Sequoia Capital India have entirely divested their shareholding in SKS Microfinance and requested the company to notify the relevant authorities that they cease to be promoters.
Following this move, SKS Microfinance's promoter group will consist of only three entities - Westbridge Ventures (6.07 per cent stake), Kismet Microfinance (5.21 per cent stake) and Kumaon Investment Holdings (4.11 per cent stake).
Mauritius Unitus Corporation, Sequoia Capital India, five mutual benefit trusts and Vikram Akula will no longer be considered as promoters of SKS Microfinance following this move.
This will also probably dent Akula's aspiration of regaining a seat on the board of the company he founded as a non-government organisation (NGO) in 1997. He had to step down as the chairperson of SKS Microfinance in 2011. While the micro-lender had not offered any explanation over his resignation, it is widely believed that a conflict between Akula and other board members over the running of SKS Microfinance led to his exit.
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In September, 2013, SKS Trust - the sole trustee of the five mutual benefit trusts - had asked the company to induct Akula back on the board. But SKS Microfinance has maintained that under its articles of association, no shareholder has any right to nominate a director.
Akula has sold almost his entire stake in SKS Microfinance. At the end of March, 2014, he held only 10 shares in the company.
"Dr Vikram Akula does not have any special rights in the company through formal or informal arrangements except such rights that are available to every public shareholder of the company. Furthermore, none of the directors or key managerial personnel of the company have been appointed pursuant to any formal or informal arrangement (with) Dr Vikram Akula," SKS Microfinance said in a notice to the BSE.
"Dr Vikram Akula has informed the company through an e-mail dated April 24, 2014, that he is not a promoter of the company," it added.
While the five mutual benefit trusts together held 12.5 per cent stake in the company at the end of March, 2014, they also requested SKS Microfinance to exclude them from the promoter group.
"The mutual benefit trusts have asserted in (a) letter that, amongst other things, they lack the ability or right to exercise any control over the company and do not have any influence over the company's decision making. In view of the same, the mutual benefit trusts have asked the company to refrain, with immediate effect, from depicting the mutual benefit trusts as promoters of the company under the applicable laws," SKS Microfinance said.
In addition, the micro-lender said that Mauritius Unitus Corporation and Sequoia Capital India have entirely divested their shareholding in SKS Microfinance and requested the company to notify the relevant authorities that they cease to be promoters.
Following this move, SKS Microfinance's promoter group will consist of only three entities - Westbridge Ventures (6.07 per cent stake), Kismet Microfinance (5.21 per cent stake) and Kumaon Investment Holdings (4.11 per cent stake).