Corporate Governance in Ipl
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
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