RRPR Holdings board has to act in its fiduciary capacity, say lawyers

The board of RRPR Holdings, a promoter entity of New Delhi Television (NDTV), will have to allot shares against warrants issued in the past to Vishvapradhan Commercial (VCPL) – now a company owned by Adani Group.

This is for past contractual obligations made by RRPR Holdings. The company and its board cannot act in an individual capacity, but act instead in a fiduciary capacity, said lawyers aware of Adani’s plans. 

The conversion of issued warrants into equity cannot be prevented by founders Prannoy Roy and Radhika Roy, even if they are part of the board, as the company is different from individuals,