Vikram Akula, the one-time poster boy of microfinance in India and founder-chairman of SKS Microfinance, is trying to make a comeback to the very company he founded in 1998 but had lost control two years ago.
SKS Trust Advisors, the original promoter of SKS headed by Bikshamaiah Gujja a close friend of Akula, has increased its shareholding in the company and has asked for a seat on its board of directors
The trust has increased the stake in the company to 8.79% in June end from 7.84% in March 2013, SKS Microfinance said in a filing to the Bombay Stock Exchange. Akula currently holds 0.84% stake in the company.
However, it is likely to be difficult for SKS Trust to get a seat on the board of SKS Micro.
"We wish to record that no particular shareholder has any nomination rights. SKS Microfinance Limited's Memorandum & Articles of Association do not confer any special right to any particular shareholder, more particularly board representation. The directors are appointed as per the extant provisions of the Companies Act and are subject to the approval of the general body of shareholders, as applicable," SKS Microfinance spokesperson said.
Akula could not be contacted for the story.
At present, the combined holding of SKS Trust Advisors and Akula is 9.63%, close to the 10% mark that allows minority shareholders to move the Company Law Board (CLB) for a greater participation in the affairs of the company.
Akula had to leave India's only listed microfinance company in November following differences of opinion with the board.