Shares in PTC India Financial Services (PFS) plunged 19.49% on Thursday, a day after the non-banking financial firm said all three independent directors had resigned over corporate governance issues. The stock fell to a session low of Rs 20.65.
“We have received the resignation of three independent directors with a number of reasons mentioned. The matter will be resolved at the board level and subsequent updates will be communicated to all stakeholders as appropriate,” the company said in a notice to the exchange.
Promoted by PTC India Ltd (PTC), PFS is registered as an NBFC with the Reserve Bank of India (RBI).
“Kamlesh Shivji Vikamsey, Thomas Mathew T and Santosh B Nayar have resigned as independent directors with immediate effect,” PFS told the exchange on Wednesday.
This may be the first instance of all independent directors of a company resigning together.
The directors also sent resignation letters to the Reserve Bank of India, the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs.
In their resignation letter, the directors allege that certain actions by the company’s chairman and managing director were “overstepping” and “violating” the provisions of the 2013 Companies Act.
The independent director also raised the issue of a Rs 1.25 crore bridge loan to NSL Nagapatnam Power and Infratech Pvt Ltd, in addition to claiming that “no action has been taken” on certain corporate governance issues.
They noted that communication from independent directors had been “blatantly ignored,” and they said this lack of cooperation between management and the company was unfortunate and a deterrent to the spirit of the law that prevented independent directors from sitting on public company boards.”