Tag: Corporate Governance
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Saga of Independent Director Resignations Unfolds Again in India Inc.
[Harpreet Kaur is Vice-Chancellor, National Law University, Jodhpur] The Indian corporate governance landscape has once again witnessed resignations by independent directors in what was a seemingly promising startup. Soon after an interim order was passed by the Securities and Exchange Board of India (SEBI) against the promoters of the Gensol Engineering Limited (GEL), who are also the founders of BluSmart
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SEBI’s 2025 Related Party Transactions’ Overhaul: Balancing Ease of Doing Business and Investor Protection
[Mustafa Rajkotwala is a commercial lawyer based in Mumbai, India] On 4 August 2025, the Securities and Exchange Board of India (‘SEBI’) released a consultation paper (‘2025 Paper’) proposing a significant overhaul of the framework governing related party transactions (‘RPTs’) under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘LODR’). The proposals follow recommendations of the Advisory
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Ministerial, Not Managerial: SAT Limits Compliance Officer Liability in V. Shankar
[Aadya Narain is a B.A. LL.B. (Hons.) student at Jindal Global Law School] On 5 May 2025, the Securities Appellate Tribunal (“SAT”) in V. Shankar v SEBI addressed a critical and controversial question: can a compliance officer be held personally liable for fraudulent disclosures and statutory violations committed by the board of directors of a listed company? The
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Protection of Minority Shareholder Rights: Addressing Shareholder Deadlocks
[Shreeji Patel is a student at National Law Institute University, Bhopal (NLIU)] A recent ruling in Escientia Life Sciences v. Escientia Advanced Sciences (P) Ltd. dated 21 March 2025 reflects the evolving approach of the National Company Law Tribunal (“NCLT”) in resolving shareholder deadlocks. The NCLT proposed a structured buy-out mechanism after observing that a continued deadlock would jeopardize
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The Doctrine of Vicarious Liability of Auditors: Delhi High Court in Deloitte v. Union of India
[Bharat Vasani is a Senior Advisor and Maharshi Shah and Ayush Lahoti are Associates, all at the Mumbai office of Cyril Amarchand Mangaldas. An earlier version of this post was published on the Cyril Amarchand Mangaldas Blog] India’s evolving financial reporting system has made robust corporate governance mechanisms indispensable. The need for heightened financial reporting mechanisms was first felt after
