Why should shareholders pay for defaulter’s greed?
Corporate laws and ethics fuel economic sustenance except when they become tools in the wrong hands. NSEL is not only a case of flouted rules but also about inefficiency of the system to penetrate deeper to catch hold of wrong doers.
I write this today, having read an amazing book on him — The Target Book, by Shantanu Guha Ray.
That leads back to another outlandish order passed in the case — the forced merger between NSEL and FTIL against every established norm of corporate governance. Not only does that leave 63k FTIL shareholders in the lurch, the baffling verdict opens up an easy escape route to NSEL defaulters and pushes FTIL into paying up Rs 5600 crore for NSEL discrepancies.
Piecing it all together, the concern that defaulters will be set free is as alarmingly dangerous as the system chasing down innocents who should not be paying for someone else’s flimflam. Isn’t it time for a change of course to trigger necessary steps and actions?
For more information check The Target Book Reviews.