c Law Nominee Director

INTRODUCTION

A recent notification by SEBI has abolished the position of prospect Directors in Public listed companies. Until few years back, reports and articles suggested that Nominee Directors should be independent directors. Then what bought about the change? And whether the same is hard-hitting and for good? These be some of the questions which will be canvass in this project along with the utilisation of Nominee Directors in the light of Corporate Governance.
The phenomenon of prospect director has become an eventful feature of the modern Indian collective scene. This is primarily because of the role of the various lending institutions like banks, mutual funds, public pecuniary institutions, state financial corporations, etc. These lending institutions have fabricated a pivotal role in the modern corporate world financing the various projects of the companies also as the monetary commitments by these institutions are high it is but natural that they would necessity to safeguard their interests. Besides they would also like to ensure that the capital is used for the stipulated purposes only.




A look at the concept of nominee director would reveal that this concept has a serious drawback it existence the conflict of interest and division of loyalty that a nominee director has to face on the helping hand being a representative of a institution and on the other hand being the director of a company and the duties and liabilities that come with it.

candidate DIRECTORS

Nominee directors as a concept exists worldwide, Institutional investors model them on the board of a company where they have throw up in substantial amount of their money thereby assure themselves that there is somebody in the board who will take aim care of their interest and see that their money is being invested in places were it ought to be.
Thus, before talking about Nominee Directors, lets first examine the role of Institutional Investors. There are two views with regard to the role that an Institutional investor should...If you want to recrudesce a full essay, order it on our website: Ordercustompaper.com



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