Many in this country including the corporates are closely watching the IPL controversy and it had led Mr.Shari Tharoor to submit his resignation. There are many interesting issues in the entire episode and I want to highlight few issues as a classic example of complications in dealing with corporate issues. Any irregularity in a company may be dealwith by the Central Government, Company Law Board, Company Court and SEBI if the Company is a listed Company. We rarely see the Central Government suo muto initiating proceedings against a Company and normally the misdeeds in a Company are questioned before the Company Law Board, Company Court and SEBI when the Company is a listed Company. The issue has come to lime light as everybody knows with the tweeting done by Mr.Lalit Modi saying that Mr.Shashi Tharoor had called him asking not to insist as to who are all the shareholders of the Kochi Franchise. Initially, the people behind Kochi Franchise had made a public statement that they have acted in accordance with the provisions of the Companies Act, 1956 and the corporate regulations. Then, slowly, the media has even probed into the issue of violation of the provisions of the Companies Act, 1956 in granting sweat equity to Shunanda Pushkar. The facts are like:
1. Rendezvous Sports World Pvt Ltd is a private limited company and it has granted 70 crore worth equity to Shunanda Pushkar claiming that she has a professional expertise and an expertise in event management and brand management. 2. Rendezvous Sports World Pvt. Ltd has infact changed its name and the company has brought the other investors together to form a consortium for bidding for IPL Kochi Franchise. 3. It was pointed by the media that Rendezvous Sports has violated all the provisions of the Companies Act, 1956 in granting Sweat Equity to Shunanda Pushkar and now Shunanda Pushkar had voluntarily surrendered her share claiming that she is deeply hurt. 4. BCCI claims that there is a clause in the bidding document that no information is to be revealed public and they claim it as a "confidentiality clause". 5. No shareholder in the Company nor the other investors has any grievance against the management in the Company. 6. The Central Government has decided to look into the issue in public interest and in view of the wide spread allegations and it was told that while the Finance Ministry will look into the issue of sources of funds, Corporate Ministry will look into other issues like non-compliance of corporate regulations etc.
From srikanth point of view, he has described corporate governance with his experiences which is as follows: Contrary to the beliefs and outcries from critics of the IPL, I have concrete evidence that the IPL is a successful corporation that demonstrates values and practices that meet and exceed global standards in corporate governance. I have tested the practices of the IPL against ISO 31000 (an objective science based international risk management standard developed through global consensus amongst 4 right wing ideologues from Australia and Japan and three Canadian Sycophants) and found them to compliant on all fronts. In the rich tradition of corporate governance consulting, I give you the top 10 reasons for why I believe IPL is an inspirational story for corporations worldwide. These reasons have been determined based on a scientific analysis of data collected from highly subjective, opinionated, and prejudiced minds of experts. Here goes: 1. Environmentally Conscious – Large open spaces were seen in stadiums left by partially constructed stands. These provided for fresh air and enhanced the architectural beauty of the grounds. 2. Diversity in the Workplace – The DD vs CSK playoff game was a case in point. Sunny Gupta moonwalked into the side as a like for like replacement (brown replacing brown) and was a shining light in IPL’s diversity practices. Additionally, a black guy was brought in place of a white guy who was dropped because a brown...
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