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Mar 30, 2020

SEBI Informal Guidance in the Matter of KCP Limited

KCP Vietnam Industries Limited (‘KCP Vietnam’), incorporated in Vietnam, is a ‘material subsidiary’ of KCP Limited (‘KCP’). The governing body of KCP Vietnam is a members’ council instead of a board of directors. Under the SEBI LODR, it is mandatory that at least one independent director on the board of a listed entity in India will be director on the board of an unlisted material subsidiary, including a material subsidiary incorporated outside India. Accordingly, SEBI, in its informal guidance dated January 9, 2020 clarified that KCP would be required to appoint one of its independent directors on the members’ council of KCP Vietnam.

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These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

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