Minority shareholders of Ujjivan Financial Services reject special offer to appoint Samit Ghosh as MD and CEO

As per the results of the e-voting sent to the stock exchanges, Ujjivan Financial Services’ minority shareholders have rejected a special resolution appointing founder and chairman Samit Ghosh as the company’s managing director and chief executive officer.

Further, the shareholders did not approve the special resolution to re-appoint Abhijeet Sen as an independent director.

Both proposals received 70 percent valid votes. However, for these special resolutions in nature, a minimum of 75 percent of the valid votes required to vote in favor of the proposal or at least three times the vote against the resolution, the company secretary informed the exchanges.

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The shareholders appointed Sunil Vinayak Patel and Rajesh Kumar Jogi as independent directors, with the requisite majority through simple proposals.

Minority shareholders upset

Ghosh, who will continue as president of the company, told Moneycontrol that minority shareholders were probably upset by the share price performance during the COVID period. Ghosh said that the company would select another candidate for the post of MD and CEO within the next six months.

“The company wanted me to temporarily fill the MD and CEO position with my current position as chairman. That’s because former MD and CEO Ittira Davis joined Ujjivan Small Finance Bank’s board as part-time chairman Moved to and the post became vacant. But, since minority shareholders did not approve the proposal, 75 percent
Ghosh said that the cutoff for the special offer was not found.

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Ujjivan Financial closed at Rs 207.35 per share against its 52-week high of Rs 310.85. Ghosh founded Ujjivan in 2005 as a leading microfinance institution for the urban poor. He is a career banker for over 30 years and has worked in South Asia and the Middle East.
Ghosh started his career with Citibank in 1975 and led Consumer Banking in India in 1985. In addition, he introduced retail banking in the Middle East and South Asia for Standard Chartered Bank and for HDFC Bank in India. His last assignment was with Bank Muscat as his Chief Executive (India).

Ghosh holds a Master of Business Administration degree from the Wharton School of Business at the University of Pennsylvania. He has also served as President of Microfinance Institutions Network (MFIN) and President of Karnataka Microfinance Institutions (AKMI). Ghosh is also on the board of Stitching to promote Women’s World Banking (SWWB).

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Ujjivan Financial Services reported a consolidated loss of Rs 490.73 crore for the third quarter ended December 2020. The company reported a net profit of Rs 74.97 crore in the year-ago quarter. The company’s total income rose 3.6 percent to Rs 792.08 crore in the October-December period from Rs 764.71 crore a year earlier.

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