Upholding Shareholder's Rights With Special Focus On The Liability Of Directors Under Companies Act: PNB Finance Case
Samruddhi Varma, Narsee Monjee Institute of Management Studies, School of Law, Navi Mumbai & Himanshu Kalwani, Government Law College, Mumbai
ABSTRACT
PNB Home Financing Limited (PNB Home) is a National House Bank- registered housing finance company (NHB). After incorporation under the 1956 Companies Act, it began operations on November 11, 1988. Punjab National Bank sponsors PNB Housing (PNB). In November 2016, the company sold stock. The NSE and BSE have listed its equity shares from November 7, 2016. (BSE). This firm accepts public deposits and provides housing loans and real estate-backed loans. On December 9, 2009, PNB sold DEPL its 26% interest and formed a strategic partnership with Destimoney Enterprises Private Limited (DEPL). DEPL sold all of its 49% stake in the firm to Carlyle Group-owned Quality Investments Holdings in February 2015. Punjab National Bank, the bank's parent, held 51%. In July 2022, the parent firm had 33% shares, which subsequently decreased. This research paper aims to understand the duties and liabilities of directors given under Section 166 of Companies Act, 2013 and as to study the role of a statutory body in this case, and when and how it should intervene.
