SC shuts door on promoters contesting BFI board elections via public quota
▸ Part of: Insurance Authority Chairman Appointment Process Scrapped; New Process to Begin
The Supreme Court has ruled that shareholders holding both promoter and public shares in banks and financial institutions cannot contest board elections under the public category. This decision upheld the central bank’s regulatory authority and dismissed a writ petition filed by Citizens Bank International shareholder Ratneshwar Prasad Sharma, who was disqualified from a public director seat. The court emphasized that allowing promoter-group investors to secure seats under the public quota creates a conflict of interest and undermines transparency.
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