IL&FS crisis: Learnings in corporate governance

None of the six nominee directors- who represent the five shareholders in IL&FS - are named as respondents in the government's appeal before the National Company Law Tribunal

IL&FS, which is a non-banking finance company (NBFC, also called shadow bank) with 169 group companies (of which only three are listed), is engaged in financing infrastructure projects. Major shareholders of the company are: LIC (25.3 per cent), Orix Corp, Japan (23.5 per cent), Abu Dhabi Investment Authority (12.6 per cent), IL&FS Employee Welfare Trust (12 per cent), HDFC (9 per cent), Central Bank of India (7.7 per cent), and SBI( 6.4 per cent). All the major shareholders have had their nominee directors on the board with the exception of HDFC.
 
The company is sitting on a debt of