Resignations at PTC India Financial Services put focus on governance
The latest resignations by independent directors of PTC India Financial Services have brought to focus instances of mis-governance, management high-handedness and evergreening of loans at the company. In a significant development, four out of the six non-executive independent directors on the board of PTC India have resigned. The directors in their resignation letters have raised concerns over governance issues.
In his resignation letter, Gokhale, who was the chairman of the audit committee of the board, said, "It is only in the last 12 months that certain issues of governance, compliance and management in PFS — a material subsidiary of PTC, came to the fore. Since then, for reasons briefly enumerated below, approach of the PTC management and the atmosphere in the board has been significantly vitiated. The company (PTC) has seen a steady downslide in terms of approach towards the independent directors, issues of governance and compliance. I have, therefore, taken a call to resign from the Board due to the prevalence of certain factors which I, believe, have in the past year constrained me from contributing meaningfully to the proceedings of the Board."
