Can and able: Business families like the Lodhas can fight, but should be able to pay for it
Live MintFamily feuds have long been a staple of human drama. This makes the resolution of family feuds particularly urgent, as disputes among promoters can have far-reaching consequences for operational stability, minority shareholder confidence and even market performance. Courts weigh factors like prior usage, trademark registration and public perception to settle disputes over the use of brand names, but rarely is the shareholder’s perspective given its due. While family disputes grab headlines, these critical players often stand by as passive spectators, perhaps wary of upsetting the powerful promoter group. A mandatory ‘promoter feud disclosure’ clause should require listed entities to publicly report disputes, including detailed disclosures on who has operational control, who takes management decisions, who bears the costs of legal disputes and whether any standstill issues exist as a result of any prior arrangements.
History of this topic
Mother of warring Lodha brothers urges them to resolve bitter dispute
Hindustan Times
Mint Explainer: What sparks family feuds in Indian corporations?
Live Mint
Shield minority shareholders from business family feuds
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