When firm delists amid Covid-19: Independent directors face testing times

Regulator must empower them to protect interests of minority shareholders, say experts

When shareholders of Vedanta Ltd vote on the special resolution to delist the company, not only investors but also legal experts are likely to keep a close eye on the developments in the metal and mining conglomerate. This will be the first instance of a major diversified manufacturing group initiating the delisting process during a pandemic-induced lockdown. Several other promoter groups — such as London-headquartered Diageo, which is planning to take United Spirits private —  are looking at taking this route as they go about re-building business in the pandemic-stricken environment.

While there is a regulatory process in place when