Franklin Templeton Trustee Services has called for an extraordinary general meeting on June 18 to indemnify its directors from all the liabilities in connection with the decision to wind-up six debt schemes taken on April 23.

This comes a day after SEBI filed its petition in the Gujarat High Court to lift the stay on e-voting process to wind-up the six debt schemes.

Earlier, Franklin Templeton had also moved the Supreme Court against Gujarat High Court stay and is awaiting a hearing.

Meanwhile, the fund house said the proposed indemnity will cover all liability that may result from regulatory actions including case of negligence, default, breach of duty, or breach of trust against the directors.

It will also include advance or direct payment of legal or travel costs incurred by any directors.

It had authorised Alok Sethi and Shilpa Shetty, Directors of the company to issue a letter confirming the indemnity protection to the directors.

The extraordinary general meeting will be conducted through video conferencing.

Justifying the proposal, the fund house said the Articles of Association of the company offers indemnity cover to every director against liability in respect of matters which arise from acts or omissions of such person in the ordinary course of discharging their authorised duties in good faith and in the best interest of the company.

Since all the directors will be considered as interested parties, the indemnity will become effective only if a determination is made in this regard by an ordinary resolution of the shareholders in a general meeting, it said.

It is therefore proposed to make a determination on the indemnity protection available to the directors under the Articles of Association of the company by way of an ordinary resolution, it said.

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