Corporate Goverance Issues : Thread 🚩

One of the most important parameters that an Investor should look into while Investing in any company is the health and quality of Corporate Governance.

Let’s use this thread to share any instances of corporate governance lapses or issues which can act as a red-flag before/after investing :

Disclaimer : No company mentioned in the thread is a recommendation to sell. The final decision has to be taken by the investor taking into consideration all the factors.

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Lux Industries Ltd.

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For me the most important factor that could drive a business up or down are the people who run the business. As we cannot really create a number to represent the quality of people in the business its very hard to appropriately attach a future value to the business. This is especially so with non - Blue chip stocks and retail segment who cannot have an up close peek in to the people in a business.

A great team of people can take an ordinary idea and turn it into a great business and a lousy team can take a wonderful idea and then crash the business. Its almost always about the people in business.

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Brightcomm Group

Forensic Audit order dated 16th Sept, 2021 in BCG by SEBI. It is filed to the exchanges today after 5 months.

Here’s the communication :

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Salasar Techno

Please make a note of guys who recommended this stock. Its a nice exercise in my opinion to filter out advisors who arent that genuine (gets paid) for posting stuff like this.

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I consider SEBI equally responsible in this case.
When SEBI ordered forensic audit, they should have informed stock exchanges too about it. SEBI didn’t inform exchanges and company conveniently forgot to inform :slight_smile:

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Omaxe Ltd

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Asian Granito

Looks like some of the finfluencers were offered to write a thread on this for money. Aditya Kondawar, as im following him from couple of years is a genuine guy.

Do check this tweet out by Abhishek Murarka as well. Looks like there were issues in the past as well.

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I can understand promoters doing unethical things. What i still do not understand is what was the board or directors of erstwhile yes bank doing when rana kapoor was doing all the fraudulent things.

Aren’t these guys equally responsible for the downfall. Never saw any enquiry been done on the other members other than rana kapoor.

It is just not possible for one man to do fraud and bring down a bank. The board should be questioned as well.

I was listening to saurabh mukerjea of marcellus. It seems according to him there are only handful of companies who operate their business on a clean slate in India.

My real time experience was with vedanta, how this one man who held just 50.5 percent in a company tried to delist the same. The things the group did to downcast the financials. What is even more nauseatic is the way press still considers the promoter as one of the greats.

Glad got out of it without losses.

On one hand everyone says its a crime to put money in fixed deposit and equities is the only way out. But its a mine field out here.

If you follow money life there is always one broker licence getting cancelled by sebi

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Man Industries Ltd.

SEBI orders forensic audit of books of accounts.

Here’s a post on this same by alpha ideas :

The strange case of Man Industries – Alpha Ideas

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What happend to Hero Motocorp Income Tax Fraud of 1000 Crore.

How can I get a follow up on this case without filing RTI or something like that.

Its share price is up 12% since the news.

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Urja Global

Zacobite - This was the non existent substance that Urja global promised to supply to a Japanese company Nippon Shinyaku Co Ltd.

Stock did more than 25x and after couple of years, market gets to know there’s no such thing :smile:

People forget news quite easily. Also never judge a book by the cover.

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Zacobite - wow - This is funny.

Had a good laugh, the company trying to sell Zacobite a non existent thing.

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