Fortis stumbles, again: Corporate governance concerns in board decision

There is no doubt that poor governance practice was followed by the Fortis board in its approach to this deal

Indian health care major Fortis, which has lost 7 per cent in value on the markets this year so far, has continued to stumble with its rehabilitation plan. The company was thrown into turmoil by allegations against the promoters, who had to step down in February. The latest wound is also self-inflicted. Fortis’ board has chosen one of the four possible options. The deal will, of course, have to be accepted by shareholders. Yet the decision itself has raised knotty questions about the quality of corporate governance on offer at Fortis. It has been reported that three independent directors in