India:
Decoding Boardroom Dilemmas (Part III): Can Nominee Directors Share UPSI With Nominating Shareholders?
22 August 2022
Resolut Partners
To print this article, all you need is to be registered or login on Mondaq.com.
an institutional shareholder has nominated a director, there is
a natural expectation for the shareholder to receive information
about the target company so that their collective interests are
protected by the nominee director.
But is such information flow protected under law, and can
nominee directors legitimately share insider information, known as
unpublished price sensitive information (UPSI), with their
nominating shareholder?
In this edition of Decoding Boardroom Dilemmas, we explore the
legal and practical nuances surrounding a frequented, yet rather
ambiguous part of the law. More foundationally, we ask: if nominee
directors are completely constrained from prioritising their
nominators' interests, why recognise rights to nominate
directors in the first place?
To view the full article please click
here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Corporate/Commercial Law from India
Due Diligence In M&A: A Detailed Overview
Metalegal Advocates
Due Diligence (‘DD'), in simple terms, is a comprehensive audit of a corporate entity conducted in relation to a transaction to assess risks and confirm facts.
Decoding The Updated Secretarial Standards
Bharucha & Partners
This article discusses the key changes introduced in the updated Secretarial Standard on Meetings of the Board of Directors and the Secretarial Standard on General Meetings which are effective from 1 April 2024.
SEBI Measures To Enhance Investor Protection
S.S. Rana & Co. Advocates
In the ever-changing capital market and abundance in securities, there are numerous characteristics creating an impact on the security market in India. Security Exchange Board of India (SEBI)...
Revisiting Representation And Warranty Clauses
Obhan & Associates
Clauses related to representations, warranties and indemnifications are widely negotiated clauses of commercial contracts especially in M&A transactions. The interests of the parties to a contract typically do not align with respect ...