Winding up of 6 debt schemes: Franklin Templeton holds EGM to approve indemnity to directors

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Published: June 19, 2020 12:01 AM

Later on May 28, the fund houses had announced an e-voting process and unit holders meeting to seek approval for the same.

However, the fund house suspended the e-voting and unit holder meeting after the Gujarat High Court dismissed Franklin Templeton MF’s plea to vacate the relief granted by the court of June 3. However, the fund house suspended the e-voting and unit holder meeting after the Gujarat High Court dismissed Franklin Templeton MF’s plea to vacate the relief granted by the court of June 3.

Franklin Templeton Trustee Services on Thursday held an extraordinary general meeting (EGM) to approve granting indemnity to the directors of the company in connection with winding up of six debt schemes of the fund house.

The notice for the 26th EGM stated that in accordance with the articles of association of Franklin Templeton Trustee Services (the company), the company shall indemnify all directors to the fullest extent permitted by such articles and applicable law, in connection with liability that any of them may incur in connection with the decision to wind-up six debt schemes of Franklin Templeton Mutual Fund, India taken on April 23, 2020.

In April, Franklin Templeton Mutual Fund decided to shut six debt schemes in April due to significantly reduced liquidity in the Indian bond markets for most debt securities and unprecedented levels of redemptions following the novel coronavirus outbreak and lockdown.

Later on May 28, the fund houses had announced an e-voting process and unit holders meeting to seek approval for the same. Voting was scheduled to take place between June 9 and June 11, and the unit holder meet on June 12. However, the fund house suspended the e-voting and unit holder meeting after the Gujarat High Court dismissed Franklin Templeton MF’s plea to vacate the relief granted by the court of June 3. The HC on June 3 stayed the e-voting and unit holder’s meeting.

A Franklin Templeton spokesperson said, “We confirm that a notice has been issued to an extra-ordinary general meeting of the members of Franklin Templeton Trustee Services with regard to indemnification of the directors of the company. It is standard practice to offer directors and officers indemnification in the performance of their duties.”

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