Institutional EYE

Commentary on Corporate Governance Issues

A new era for the Tata Group

Providing an exit to the Shapoorji Pallonji Group will compel the Tata Group to reduce its equity holding in TCS, pledge equity of its listed companies against debt, or allow an outside investor in Tata Sons. Any of these options will reduce Tata Sons’ financial flexibility, heightening the performance pressures of the group. With the SP Group’s exit, the Tata group will no longer resemble its past. Download the full blog

Lakshmi Vilas Bank: A Stitch in time

The RBI has let the situation linger at Lakshmi Vilas Bank linger for too long. It cannot afford another accident in the financial sector after IL&FS, PMC and Yes Bank. Last week marked the first anniversary of the Punjab and Maharashtra Cooperative Bank debacle. Even as stories of its depositors struggling to repay loans or depending on their friends for charity continued to hog headlines, a solution to the bank’s insolvency remains elusive. Policy makers may take comfort in the passage of the Banking Regulation (Amendment) Bill 2020, which brings cooperative banks directly under the ambit of the Reserve Bank, but depositors are still waiting for their money. PMC Bank’s collapse last year w

Virtual shareholder meetings are here to stay

Even the most sceptic will admit that virtual meetings are cheaper, greener and save time. But we should not let these pluses detract from the need to make shareholder meetings more relevant. ““Satyug beeta, Kalyug aaya, par aap ka roop badal na paya, Aap aaj bhi wahi ho, jo dhool mai phool khilade” (Good times give way to difficult days. Yet all through this period of momentous change, you have retained the ability to turn dust to gold). For the occasional attendee, this bit of poetry might lighten the mood, and provide a welcome distraction from the regimented format set-forth well in advance of the meeting and based on regulations that govern their conduct. But for those retail investors

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