Daily BriefsESG

Daily Brief ESG: Need to Reactivate the Stakeholders’ Relationship Committee in the Wake of the IndusInd Bank Fiasco and more

In today’s briefing:

  • Need to Reactivate the Stakeholders’ Relationship Committee in the Wake of the IndusInd Bank Fiasco
  • MBOs Would Open the Door to Investment for Companies that Weren’t Invested for Fear Of “Value Trap”


Need to Reactivate the Stakeholders’ Relationship Committee in the Wake of the IndusInd Bank Fiasco

By Hemindra Hazari

  • The rejection by shareholders of an independent director’s re-appointment reveals the growing influence of proxy advisory firms on institutional investors
  • Indian corporate boards appear ill-prepared to engage with stakeholders to provide valuable feedback 
  • Stakeholders Relationship Committee of the Board needs to reactivated and re-oriented to engage with stakeholders to improve governance

MBOs Would Open the Door to Investment for Companies that Weren’t Invested for Fear Of “Value Trap”

By Aki Matsumoto

  • The fact that many IPO companies either don’t need to raise capital or don’t share the same goal of going public is the crux of the problem.
  • It would be conducive to improving quality of TSE as a whole if companies that cannot share the objectives of a listed company with shareholders are delisted through an MBO.
  • An MBO by the founding family would open the door to investment for companies that have been unable to invest for fear of falling into the “value trap.”

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