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 –

Author
-
Sameer Raina has experience in advising clients on private equity transactions and mergers & acquisitions. He regularly advises corporates on general corporate and commercial laws, laws relating to non-banking financial institutions, exchange control laws and foreign investment. He has been involved in several transactions and projects in diverse areas of law, including: Private Equity: Advising funds on investments, including assessing legal risks and advising on documentation in companies involved in different sectors such as healthcare, pharmaceutical and insurance sectors and non-banking financial institutions. Corporate and Commercial laws: Advising funds, listed and unlisted companies, on various commercial laws and on regulatory matters in relation to exchange control laws and foreign investment in India.