When govt enters the boardroom

Taking control of a company citing public interest could have wider legal and regulatory implications for businesses and the government, say experts

There’s a new takeover tycoon in the town; one who doesn’t come with bags of money, but wields the sword of ‘public interest’. 

Ten days ago, the Centre moved the National Company Law Tribunal (NCLT) to replace the board of cash-strapped real estate firm Unitech. The tribunal found merits in its arguments, which included the allegation that the affairs of the company were conducted against “larger public interest,” and ordered the sacking of directors, restrained them from selling or otherwise encumbering properties and asked the government to name the people it wanted to nominate on the new board. Though the