Transition time: what a board must ask to safeguard shareholders’ interest

Transition time: what a board must ask to safeguard shareholders’ interest
BCCL

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
( Originally published on Aug 28, 2019 )

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