INSTITUTIONAL EYE Board permanency creates leverage for promoters 08 Aug, 2022

Board permanency gives promoters leverage

Recent instances suggest that giving promoters a permanent seat on the board can be detrimental to investor interest. As companies’ performance deteriorates and promoter shareholding declines, promoters continue to hang on to their board seats in a last-ditch effort to maintain control. This makes it harder for investors to effect management change and arrest value destruction.

Read our blog on how promoters embed themselves in the companies they run: here

  • Tags:
  • Boards
  • Diageo
  • Dish TV
  • entrenched boards
  • board permanency
  • Zee TV
  • Apollo Tyres
  • Nilkamal
  • United Spirits

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