SKS denies alleged irregularities in the conduct of AGM

SKS Trust sent a letter to Sebi alleging that neither the register of proxies was made available for inspection, nor the proxy closure time was mentioned

SKS Microfinance Limited, the only listed microfinance institution (MFI) in the country, has denied charges levelled by its largest shareholder, SKS Trust Advisors Private Limited, that irregularities were committed in the conduct of the company's annual general meeting held in Mumbai on Tuesday.

Soon after the AGM, SKS Trust sent a letter to the Securities and Exchange Board of India (Sebi) and other regulatory bodies besides the MFI chairman alleging that "neither the register of proxies was made available for inspection, nor the proxy closure time was mentioned. However, the shareholders were given loose proxy/authorisation forms for inspection."

In a press release on Thursday, SKS management stated that the proxy register was maintained but "no shareholder ever asked for it either at or before the AGM." The same thing was mentioned with regard to corporate resolutions pertaining to proxies. It also maintained that the proxy forms were "duly signed and are complete in all legal aspects."

"In fact, the company only received one notice for inspection in connection with the AGM. That notice does not even mention the words proxy register or corporate resolutions anywhere. It only sought an inspection of proxy forms and these were available for inspection at the AGM," SKS stated.

According to the trust's complaint that proxy forms were shown only in loose sheets, SKS non-executive chairman-interim, PH Ravikumar, pointed out that "proxy forms are always maintained in loose sheets."