CG Power’s boardroom battle has destroyed value for shareholders: InGovern
Proxy advisory firm InGovern on Thursday said a battle for control of fraud-hit CG Power and Industrial Solutions Ltd has led to value destruction for minority shareholders of the company.
The company had in August last year said that an investigation instituted by its board had found major governance and financial lapses, including some assets being provided as collateral and the money from the loans siphoned off by “identified company personnel, both current and past, including certain non-executive directors”. It fired promoter chairman Gautam Thapar on August 29.
“The investigative authorities are looking into allegations on (i) usage of funds and land assets from the company by promoter-connected entities, (ii) borrowings against the assets of the company for the benefit of other group companies, (iii) vendor transactions with promoter-connected entities,” InGovern said in a statement.
