I have been currently working on a research paper on Indian corporate governance and have to do quite a bit of reading and study on interesting and exceptional instances and cases that may have occurred in the past. I recently started reading this book, which a friend suggested would help me in my project.
This book, which I request all of you to read, brings to light how a true ‘Made in India’ story was destroyed by our very own politicians and bureaucrats. Written by Shantanu Guha Ray, the book is called The Target Book and reveals how the political-bureaucratic nexus influenced or rather dictated market regulators to slap unreasonable orders on an Indian entrepreneur, who was only taking efforts towards making India a global financial giant.
One such order was a merger of two of his companies – NSEL & FTIL.
The proposal made by the Ministry of Corporate Affairs to merge FTIL with NSEL has caused disruption in the financial circles. The reasons are not far to look for- it is a classic example of executive overreach with all sorts of the legislation’s being floated left, right, and center.
However, the proposal is against MCA’s own circular that was set out in April 2011 containing guidelines for the amalgamation of two government companies. For a merger to materialize, it laid out the minimum requirement of obtaining consent from 100% shareholders and 90% creditors. In the case at hand, no such opportunity was provided to the stakeholders of FTIL.
I hope the book reaches the right tables of Power and Justice Prevails.
For more information check The Target Book Reviews.