The opinion piece examines how the role of board observers is increasingly evolving beyond passive participation, raising concerns over potential legal liability. Although board observers do not possess voting rights or statutory responsibilities like directors, regulators and courts are placing greater emphasis on their actual influence over board decisions. Where observers exercise significant control or shape strategic outcomes, they may be regarded as “shadow directors” and face accountability under corporate and securities laws, highlighting the importance of clearly defined responsibilities and robust governance practices.
Please click here to read the full article by Manvinder Singh, Partner; published in Moneycontrol.
Manvinder has a practice of more than 20 years and specializes in acquisitions, private equity & venture capital investments. Manvinder regularly advises leading global private equity funds in structuring and concluding their investments in Indian companies.