The National Company Law Tribunal (NCLT) has ordered the central government to set up a five-member committee to oversee the sale of investments of Financial Technologies (India) Ltd (FTIL).
The members of the panel would be a retired Supreme Court judge, two independent directors of FTIL, the managing director of FTIL and a nominee of the Ministry of Corporate Affairs.
According to the NCLT order, the managing director and the nominee of the Ministry of Corporate Affairs will have veto powers individually.
According to the order, the committee will consider sale of investments held by FTIL in compliance with orders passed by any regulatory or statutory authority in India or abroad as and when such sale is proposed by the company management.
The committee will also oversee the treasury operations of FTIL like investment of surplus funds or altering/switching of investments of surplus funds when proposed by the company management.
The committee will also oversee the funding of working capital requirements of FITL's subsidiaries when proposed by the company management.
According to NCLT order, the proceeds of sale of investments shall be deposited in a fixed deposit account to be used with the permission of the tribunal.
--IANS
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