Sona Comstar row shows why Indian firms must let professionals lead

Our Founder and MD, Mr. Shriram Subramanian, recently wrote an article in Mint on the governance implications of the ongoing Sona Comstar dispute.

He highlights how promoters, despite limited shareholding, often continue to exert informal control over listed companies, undermining board decisions and professional management. The conflict at Sona Comstar, triggered by familial objections to board appointments after the death of its chairman, reveals a larger concern. The absence of succession planning and the persistence of entitlement rooted in legacy rather than law.

Mr. Shriram Subramanian asserts that once professionals are in charge, promoters must step back and respect board autonomy. Boards must act independently, shield management from legacy interference, and ensure decisions reflect shareholder interest, not family allegiance. Regulators, too, must drive authentic compliance to safeguard investor trust.

Read the full article here: https://www.livemint.com/opinion/online-views/sona-comstar-dispute-family-business-succession-planning-board-governance-11754290215303.html

Safeguarding Companies from Promoters.pdf

Download PDF • 104KB