Top Officials of SKS Microfinance yesterday held a closed door meeting with senior Reserve Bank of India (RBI) officials to discuss about issues facing the microfinance sector. Vikram Akula the founder of SKS Microfinance was also present at the meeting.
Speaking to a section of the media after the meeting Mr Dilli Raj, chief financial officer of SKS Microfinance told a newspaper that the meeting had nothing to do with the removal of SKS Microfinance’s CEO. He further added that the discussion centered around the multiple regulatory frameworks that exist for different organisations engaged in microfinance and the lack of clear regulations for MFI’s .
Meanwhile the Andhra Pradesh High Court in an interim order given on the October 8, allowed the sacked CEO of SKS Microfinance to continue as a director on the Board of SKS Microfinance .While the High Court Rejected the plea by a shareholder called Lekha to stay Gurumani’s dismissal, it also issued an order refraining M R Rao from taking any new policy decisions without the prior appoval of the SKS Microfinance’s board.
The individual shareholder Lekha, had alleged that they were misled as the prospectus of the IPO had projected Gurumani as one of the key officials of SKS Microfinance.The petitioner in her complaint had also alleged that SKS Microfinance violated corporate governance by terminating Gurumani as MD as only shareholders can terminate the managing director since they have approved his appointment.