Podcast
Insolvency and Bankruptcy Podcast



Safeguarding Nominee Director's Interest in Private Equity Investments- Avoidable Transactions Under the Insolvency Code



Aug 18, 2023





In the Indian market, there is an increasing trend for private equity investors to get a nominee director on the board seat of the company they are investing in, along with another set of negotiated control and voting rights. While this safeguards their investment, it also increases the risk incurred by the private equity investor if the company gets admitted to the CIRP. In this podcast, Sach Chabria highlights the risks to the investors due to the wide scope of section 66 of the Insolvency and Bankruptcy Code 2016, as well as point out possible safeguards that may be taken to counter this.