Comments
The National Company Law Tribunal (NCLT) has directed the constitution of a five-member committee to oversee the regulatory sale of any investments of Financial Technologies (India) Ltd (FTIL).
The committee would comprise Managing Director of FTIL, two Independent Directors of FTIL, a retired judge of the Supreme Court and a Corporate Affairs Ministry (MCA) nominee.
The NCLT has also disposed off the MCA plea to appoint two government nominees on the FTIL Board.
The government had filed petition seeking further interim relief by way of appointing government nominees on the FTIL Board. This has been rejected by the tribunal. FTIL had opposed the appointment of government nominee directors on its board.
In its ruling, the NCLT said that the committee would have the power to decide on sale of investments held by FTIL in compliance with any order/direction passed by any regulatory or statutory authority in India or abroad as and when such sale is proposed by the management of FTIL. With this order, the FTIL can undertake treasury operations such as investment of surplus funds of FTIL or altering the investments in consultation with the committee. Working capital requirements of FTIL subsidiaries will also be co-ordinated through the committee.
NCLT also directed the MCA and the FTIL to nominate their nominees within two weeks of the said order. Both FTIL and MCA have been given liberty to approach NCLT, if they found the decision of the committee as not favourable.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.