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A timely ruling from the SAT

Regulators would do well to correct course and sharpen enforcement - it would instil greater fear in the hearts of the real wrongdoers

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The private sector and non-financial entities constitute only 20 per cent of the total issuances, with the remaining being state-owned firms

Somasekhar Sundaresan
It is a breath of fresh air. Amidst the cacophony of accountability, and blood-thirst for pinning responsibility with any wrongdoing by a corporate, clear jurisprudence is developing to protect directors sitting on the board from a carpet-bombing approach to enforcement. 

Shareholders in companies have limited liability — limited to the extent of the share capital contributed by them. However, increasingly, directors sitting on the board of companies have been facing the threat of unlimited liability, particularly when enforcement agencies that are empowered to also play a quasi-judicial role, inflict “joint and several” liability along with the company. Such imposition of joint
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First Published: Feb 27 2019 | 9:24 PM IST

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