What happens when board observers appointed by investors go beyond the act of merely ‘observing’ the board proceedings?
Can such observers be held accountable for breach of duty in the capacity of shadow directors?
In this article published by Mondaq, our Principal Associate Sameer Raina spells out the difference between board observers and shadow directors, further supported by judicial interpretations. He also cautions on how board observes must tread carefully as any trespassing with director prerogatives, may land them up in legal trouble.
Read the full article below –