Private equity funding likely to shrink if founders have the last word

Players fear giving the founders total control with even minor stake holding will disrupt decision-making process

The proposal to give the power of decision making of a company to the founders has not gone down well with private equity players and investors.

Many believe that if the proposal is finally implemented in spirit, it will have an adverse effect on the investment cycle in the country. “The need to amend relevant provisions in the Companies Act so as to facilitate founders have control over their e-commerce companies, despite having small shareholding, would be examined in the light of the experience of their utilisation by e-commerce companies,” the Draft National Policy states. 

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