Now it has been officially announced that IIHLL cannot annual Esops of Reliance General Law Firm. The Reliance general, the subsidiary of the insolvent Reliance Capital has now asked if the resolution applicant has the authority to modify the rights of the employees of Reliance Capital subsidiaries. Khaitan & Co. has now stated that the resolution plan can only be provided for the treatment of assets and liabilities for the company which is under CIRP. IHHL cannot do away with employee stock options and incentive schemes of Reliance General Insurance Co. This is the biggest news of the current time. Read till last to know everything.
According to the statement by law firm Khaitan & Co., Induslnd International Holding Ltd (IIHL), they cannot do away with employee stock options and incentive schemes of Reliance General Insurance. This is part of its resolution plan for the parent firm which is Reliance Capital. Induslnd International Holding Ltd (IIHL), is the investment arm of the Hinduja group. The company also issued a copy of the latter which was in response by the insurer. Reliance General has some authority to change the rights of employees of Reliance Capital subsidiaries and associates as Reliance General is the subsidiary of the insolvent Reliance Capital.
According to the source, there are some needs for the legal opinion that arose when Induslnd International Holding Ltd. (IIHL), is in the resolution plan for Reliance Capital. This has been sought to terminate all phantom stocks, Esops, and some other incentive programs of Reliance Capital and its subsidiaries and insurers. This move has been taken to prevent RCAP and IIHL from incurring additional expenses after the acquisition. On this Khaitan has clarified the implementation of the resolution plan of the Hindujas. This is going to have control over the assets and liabilities of Reliance General.
Khaitan has also claimed that as a consequence of the implementation plan, IIHL is going to work indirectly to control the board and shareholding of the Reliance General. This officially took control of the assets and liabilities of the insurance company which can alter assets and liabilities of Reliance General. The firm has claimed that for the alteration it would be required to be done by the terms of the contract and it cannot be done by Reliance Capital or IIHL. The resolution plan can only be provided for the treatment of assets and liabilities, Khaitan said.