SKS Micro AGM: SEBI gets complaint about absence of register of proxies

The SKS Trusts, the single largest shareholder in SKS Microfinance Ltd, has complained to the Securities and Exchange Board of India (SEBI) that the company did not produce the Register of Proxies.

Taking exception to the procedure adopted in the 10th Annual General Meeting of the company held on Tuesday, SKS Trusts said the Register was neither available for inspection by the shareholders nor the was time of proxy closure mentioned.

Recently, SKS Trusts raised its stake in the country’s lone listed MFI from about 8 per cent to 12.6 pc to become the single largest shareholder in the company and had, subsequently, claimed board representation in it.

Other lapses The outcome of some of the key resolutions in the AGM, such as a proposal related to the provision of Employee Stock Option plans (which was defeated) and reappointment of M. R. Rao as Managing Director and CEO of the company (which was passed), “would have been different if incomplete proxies were precluded from the valid votes,” it contended.

It also requested the market regulator to direct the company to withhold the results and to conduct an independent enquiry.

It may be recalled that SKS Trusts had earliest demanded a position for its representative on the board hinting that the founder and ex-chairman of SKS Vikram Akula could be its nominee. However, the management did not accept the proposal.

When contacted, a company spokesperson told Business Line that the matter did not figure in the agenda.

naga.gunturi@thehindu.co.in