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Promoter Reclassification: Who Calls The Shots?
Who should enjoy the power to trigger the reclassification of a promoter as a public shareholder, asks Umakanth Varottil.
19 Feb 2020, 07:08 PM IST ![NDTV Profit](/icons/feather-without-circle.svg)
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![(From left) Gautam Thapar of CG Power, Subhash Chandra of Zee Group, and Yes Bank’s former CEO Rana Kapoor. (Photo: BloombergQuint)](https://media.assettype.com/bloombergquint%2F2020-02%2F1dc93fa5-3b5f-403f-8225-10345c72923a%2FThapar_Kapoor_Chandra.png?rect=0%2C0%2C600%2C338&auto=format%2Ccompress&w=200)
(From left) Gautam Thapar of CG Power, Subhash Chandra of Zee Group, and Yes Bank’s former CEO Rana Kapoor. (Photo: BloombergQuint)
The concept of ‘promoters’, or controlling shareholders, has acquired a pivotal status in the Indian corporate governance discourse. Promoter status is not permanent, but transient. A promoter that cedes control over the company is expected to shed both the privileges and burdens of the status. Some questions have come into sharp focus in such a circumstance. Who enjoys the power to trigger the reclassification of a promoter as a non...
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