Sebis proposals will plug several of the disclosure gaps that exist in the current insolvency process pertaining to listed companies. Photo: Abhijit Bhatlekar/Mint
The lot of minority shareholders of companies undergoing insolvency proceedings is a sorry one. The popular narrative might be one where the promoters (who are also the management) have mismanaged affairs or worse. In reality, since the company has defaulted on its loan and not the promoters, all shareholders, being owners, take responsibility. Thats why their board is suspended, and a resolution professional is in charge, acting on behalf of the committee of creditors (CoC).
Still, minority shareholders of listed companies deserve better, at least in terms of transparency. A ce…
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