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The SKS Trusts has asked SKS Microfinance to induct Vikram Akula, the founder on its board. Biksham Gujja, chairperson of the trustee of SKS Trusts demanded this being the largest shareholder with 12.6 per cent shareholding. Gujja wrote a letter to SKS Microfinance reiterating its long-standing request for suitable representation on the board.
"We would like to help the company achieve its goal of promoting financial inclusion while also enhancing long-term shareholder value. In line with this, and as an initial step, the trusts has urged the board to induct Vikram Akula, its nominee, immediately. The appointment could be regularised at the ensuing annual general meeting. We have nominated Vikram because he has extensive experience in microfinance and is uniquely qualified to help the company," said Gujja.
The letter states that the trusts look forward to working closely with the board in steering the company to its original mission and values while seeking to restore its past leadership and glory. “The trusts hope the company will reply favourably to this long-standing request,” the letter added.
“I am truly honoured that the trusts has asked me to serve on the board of SKS Microfinance. I will do my best to help SKS Microfinance achieve its mission and to contribute to enhancing long-term shareholder value,” said Vikram Akula in a press statement.
Earlier this month, SKS Trust, the sole trustee of five mutual benefit trusts (MBT) whose beneficiaries are self-help group borrowers of SKS Microfinance, became the largest shareholder in SKS Microfinance. SKS Trust is the original promoters and shareholders of the micro-finance lender. In 2003 the MBTs were formed with the mission of promoting and enhancing the social and economic welfare of groups of poor women.
In November 2011 Akula was forced to step down from his role as executive chairman of SKS Microfinance amid the Andhra Pradesh microfinance crisis. The state had brought in a law after receiving complaints that micro-lenders were adopting coercive loan recovery practices besides charging exorbitant interest rates. The induction to the board will pave the way for the re-entry of Akula.
