PTC India Financial Services Ltd (PFS) (PTCN.NS) shares fell 18% on Thursday in their worst intraday trade since May 2015, a day after the non-banking financial company said three independent directors had resigned citing lapses in corporate governance.
The company said on Wednesday evening that it had received resignation letters dated Jan. 19 from independent directors Kamlesh Shivji Vikamsey, Thomas Mathew and Santosh Nayar.
In his resignation letter, Mathew said independent directors had flagged multiple times serious lapses in corporate governance and compliance. “I have placed on record many times – specially over the last few months my deep displeasure about the lack of appropriate information being made available to the board,” Mathew wrote.
Some of the issues pointed out included the appointment of a whole-time director. Non-disclosure of a forensic audit report regarding a loan account, and unilateral changes in loan conditions without board approvals. The company also did not address corporate governance issues reported by previous chairman Deepak Amitabh, Mathew said.
“The lack of action on part of the company management is alarming,” Mathew said in his resignation letter. The company did not immediately respond to a request from Reuters seeking clarification. Shares of PFS have gained nearly 10% so far this month after closing 2021 almost unchanged.