Board MattersFree Read
Transition time: what a board must ask to safeguard shareholders’ interest
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![Transition time: what a board must ask to safeguard shareholders’ interest](https://img.etimg.com/thumb/msid-70867651,width-1015,height-761,imgsize-443738,resizemode-8/prime/corporate-governance/transition-time-what-a-board-must-ask-to-safeguard-shareholders-interest.jpg)
Synopsis
The board must be vigilant during the transition period and ask questions relating to debt, asset quality, legacy of unethical practices, shareholding, and subsidiaries.
Companies are particularly vulnerable during a transition. This could be a CEO/CFO change, a merger, or a buyout. These are critical times, when the board must protect the shareholders from a ‘cheating’ management. The last decade has seen a 35% jump in the number of frauds. During this period, there has been a 2,113% jump in the value of frauds. However, the frauds have become more audacious now. The rising non-performing assets (NPAs), which
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