ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Excommunication by Priests

 that the government would introduce a special legislation for sick units. It is proposed to set up a Board for Financial and Industrial Reconstruction so as to provide a speedy mechanism for amalgamation and mergers and devise such other solutions as may be necessary to deal with the problem of sick units in the large and medium sector Under the proposed scheme, the onus for reporting sickness will be laid on the managements of the concerned units. They will be required to seek a fresh mandate from their share holders after 50 per cent of the net worth of the company is eroded. When a company loses its entire net worth, the existing management and the owners will not have any further role to play in running the affairs of the unit. It is also proposed that those who are deemed to be responsible for mismanaging the unit will not Have access to assistance from financial institutions even in new ventures.

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