May 31, 2013

Corruption in Indian Corporate Sector- Part II


We remember an incident in late 1970 s ( when I was a student in Delhi ) , there was a famous case of a Listed Company where there was allegation of Mismanagement .

Govt. has power to appoint Independent Directors , ostensibly , to safeguard the Interests of Minority ( Public Share Holders ). 

Some prominent persons gave Bags of Money to get appointed as Directors.


 ( High denomination notes had been demonetised ( Rs. 100  , then ,Highest Value ) so ." the Public Interest Directors "had a bit of  challenge carting  ) .

This was because these Persons knew that in the godowns of the Company were lying  large quantities of a chemical which at that time was in acute short supply.

The Directors had calculated that they would recover their " investment " by selling this product in Black


http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/small-equity-investor-how-to-safeguard-your-interests/articleshow/21742266.cms?curpg=3

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