Promoter-hood - an albatross around corporate India's neck

I have an opinion piece in today's Economic Times about doing away with the concept of promoters and keeping the concept of a more fluid 'controlling shareholder'.

The concept of promoter imprisons people who have nothing to do with the company and also those who no longer have any dealings with the company. Seeking a shareholder resolution to change the status is akin of seeking shareholder vote on whether the Sun rises in the east or west.

Also applying the concept to defunct companies and their promoters causes grave injustice in many cases. It’s like a dysfunctional car parked on the roadside for decades being told to move or be challaned.

Finally, the 35% shareholding announced in the budget should be pushed with a nudge and a carrot rather than a stick.

Link to the article