In our country, some promoters have no respect for corporate laws. They wake up from slumber, or rush to comply only when they think of tapping public money. A classic example is the Delhi-based Yatharth Hospital & Trauma Care Services Ltd (YHTCSL), promoted by Tyagi brothers Ajay Kumar and Kapil Kumar. The company has complied RoC filings pertaining the period 2017 and 2018 in the year 2022! Perhaps, had they not planned the IPO, the RoC filing would not have taken place even now.

Illogical Remuneration

As if vacating the seats for external (non-family) directors, the spouses of Tyagi brothers resigned from the board of YHTCSL on August 5, 2021. Interestingly, the board of YHTCSL’s 100% subsidiary, whose members are none other than Tyagi brothers and their spouses, has fixed a remuneration of Rs 10 lakh per month each to the Tyagi spouses from August 2021 onwards! When Tyagi brothers who are holding executive positions (Chairman & Whole-Time Director and Managing Director respectively) in the parent company are paid a remuneration Rs 10 lakh each per month, their spouses, whose role in the subsidiary is not revealed, are paid the same amount of remuneration which is not in commensurate with the company’s revenue and profit as compared to the parent company.