SKS Micro extends MD's term for 5 yrs

SKS Microfinance said it had given a five-year extension (subject to a review after three years) to the term of its managing director and chief executive officer, M Ramachandra Rao, with effect from October 4 this year.

It sent a communication to the stock exchanges in this regard on Thursday.

The move comes as SKS' founder, Vikram Akula, later ousted from its board of directors, is trying to make a re-entry. SKS Trusts, the largest shareholder in the micro finance company, recently requested he be inducted as its nominee on the board.

In November 2011, Akula had to step down as chairman after conflict with other board members over management of the firm. SKS has said its articles of association do not allow shareholders to nominate directors to the board.

Observers said Rao's re-appointment was another indication that the board was not keen to get Akula back.