IL&FS BOARD RECAST
As the debt-stricken IL&FS Group moved from crisis to crisis, the Central government in October superseded the management ...
As the debt-stricken IL&FS Group moved from crisis to crisis, the Central government in October superseded the management of the beleaguered company by appointing a six-member board led by banker Uday Kotak to restore its financial solvency
“The NCLT (National Company Law Tribunal) suspended the existing board and directed that the suspended members should not represent the company in any form with immediate effect," said Ministry of Corporate Affairs (MCA) in a statement. "The NCLT approved the induction of six directors recommended by the government, in the first instance, consisting of Uday Kotak, MD & CEO of Kotak Mahindra Bank, as Non-Executive Chairman and Vineet Nayyar, G.N. Bajpai, former Chairman, SEBI, G.C. Chaturvedi, Non-Executive Chairperson, ICICI Bank, Malini Shankar and Nand Kishore as directors."
The development comes after the NCLT Mumbai ordered supersession of the existing board on a plea moved by the MCA to prevent any "further mismanagement in order to protect public interest". In Delhi, Economic Affairs Secretary S.C. Garg said the Government in public interest moved NCLT to supersede the management of IL&FS on grounds of mismanagement. "NCLT has allowed appointment of a new board comprising people with proven record of managing financial and infrastructure institutions...it is not a takeover," Mr Garg said.