SKS Microfinance Limited on Monday said the board resolution passed on October 4, terminating Suresh Gurumani's employment with the company as the managing director and chief executive officer (CEO)with immediate effect, continued to be valid.
It may be recalled that the Andhra Pradesh High Court on October 8, while admitting a petition filed by shareholder Lekha (holding 18 shares equalling .00002 per cent of the total share capital), had restrained the present CEO and Managing Director MR Rao from taking any major policy decisions concerning SKS without prior approval of the board until further orders.
In a filing to BSE on Monday, the company said Gurumani was the non-executive and non-independent director on the SKS board, which was chaired by founder Vikram Akula. The other non-executive and non-independent directors included Sumir Chadha and Parseh Patel. It had V Chandrasekaran, PH Ravi Kumar, Tarun Khanna, Geoff Woolley and Pramod Bhasin as independent directors. A company release on Monday said the directors present in the meeting, or otherwise, had unanimously decided to terminate the employment of Gurumani. Eight directors were present in the meeting and there were no dissenting votes. Gurumani, also one of the directors, refused to participate in the meeting while one more director was unable to attend the meeting as he was travelling in the US. Subsequent to the termination of Gurumani, Rao was appointed the as director, managing director and chief executive officer with the approval of all the directors present.
The company said Gurumani was an employee and also a director on the board of SKS, which were two separate capacities. The board only terminated him from the post of managing director and he shall continue in his capacity as a director on the board, until removed by the shareholders at a general body meeting.
With Rao's appointment, the number of non-independent directors would have gone up to six of the total 11. Ashish Lakhanpal, an investor director, tendered his resignation so that at least 50 per cent of the board was independent according to the listing requirements. Prior to resigning, Lakhanpal cast his vote in favour Gurumani’s.
