Unconfirmed reports reveal that SKS Microfinace’s former CEO Suresh Gurmani is considering legal action against SKS Microfinance and could sue them in court for his abrupt termination. Gurumani has also indicated that the company’s interest could be affected by this move.
Some analysts believe that one of the reasons behind this legal option could be because Suresh Gurmani is not eligible for severance package of around Rs 40 crore from the company. As per the terms and conditions of the five year contract signed between Gurmani and SKS Microfinance, he will not be eligible for a severance package if his job is terminated.
CNBC-TV18 has reported that the termination not just requires the board’s approval but it also requires the approval from the lenders of SKS Microfinance and hence may not be valid. However, SKS Microfinance has assured investors and analysts that they have complied with all the statutory requirements and that they had also sought legal opinion from two external counsels on this matter before terminating Suresh Gurumani’s services.
In today’s trade SKS Microfinance’s stock slid further by 0.7 % and closed at Rs 1271 down by Rs 9 on the National Stock Exchange. The stock witnessed selling pressure at higher levels and had made a high of Rs 1324 in early trade.