Adani Enterprises and Adani Energy Solutions (formerly Adani Transmission) on Friday made amendments to their articles of association to allow their bond trustees to nominate a director on their boards.
“Subject to the provisions of the Act, whenever the debenture trustee(s) nominate a person to be appointed as a director on the board of the company in exercise of its duties… The board shall appoint such person as a director,” both the companies stated in similar stock exchange filings.
In cases where more than one debenture trustees are entitled to be appointed a director, then such trustees may jointly nominate one person to the board, the companies said.
Debenture trustees are custodians holding debt securities on behalf of investors.
As per the Securities and Exchange Board of India (Sebi) norms, corporate issuers of listed debt must ensure that their articles of association have a provision for debenture trustees to nominate a board director. In July, Sebi had clarified that even in cases where issuers were not structured as companies, there will be an obligation on them to appoint a nominee director.
