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Govt Takes A Liberal Stand On Shareholders Pact

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BUSINESS STANDARD
Last Updated : May 22 2001 | 12:00 AM IST

The government will compensate strategic buyers for any losses they incur on account of any violation of the shareholders agreement on the part of the government.

In addition, it will also indemnify buyers for any outstanding liability of sales tax, income tax or excise duty which is disputed at time of sale.

Keeping in mind the extreme sensitivity of foreign bidders to issues relating to environmental issues, the government has also inluded the issue of environmental liabilities.

The shareholder agreements will include provisions stating that if there are any claims regarding environmental damage arising out acts of

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First Published: May 22 2001 | 12:00 AM IST

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