SKS Trusts to approach CLB for Akula’s return

SKS Trusts to approach CLB for Akula’s return
Highlights

Recently, the SKS Trusts wrote a letter to SKS Microfinance demanding Vikram Akula, the company’s founder, to be inducted in the Board of the company, as the trust became single largest shareholder of the micro lender.

Hyderabad: SKS Trusts which recently emerged as largest shareholder in the SKS Microfinance Limited said it will knock at the doors of the Company Law Board(CLB) and also explore other legal options if the microfinance company refuses to accommodate its nominee on its Board.
Recently, the SKS Trusts wrote a letter to SKS Microfinance demanding Vikram Akula, the company’s founder, to be inducted in the Board of the company, as the trust became single largest shareholder of the micro lender. Reacting to the claim, SKS Microfinance had last week said as per Articles of Association of the company, no shareholder has a right to claim place in the Board.
Biksham Gujja, chairperson of the trustee company of SKS Trusts, said they have no option but to approach appropriate forums to stake their claim. "We nominated Vikram Akula because he is eminently qualified to be on the Board of SKS. He is a recognised pioneer in microfinance and founded SKS Microfinance. If the Board rejects us, we will pursue all legal channels, including approaching the Company Law Board," Gujja said.
SKS Trusts are five mutual benefit trusts whose beneficiaries are self-help groups of borrowers of SKS Microfinance Ltd. The Trusts have recently become the largest shareholder with 12.6 per cent shareholding in the country's only listed micro lender. Vikram Akula, the founder and ex-chairman of SKS Microfinance, was given an unceremonious exit from the company in November 2011 following the AP microfinance crisis.
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