Instan tip

The fortnight’s burning question.
Was Wipro right in hiding the World Bank ban for two years?
Maybe. Suresh Surana, Founder,
RSM Astute Consulting Group The ban is not because of any violation of law, but an usual business development. As such, in my view, Wipro was not obliged to disclose this aspect under any regulations currently prevalent or under corporate governance norms. I think the company should have brought this issue to the notice of its board of directors.

No. Siddharth Shankar, Director, Kassa
Shareholders should have been informed. Wipro could have added that they are in talks with World Bank to sort out the matter. The letter that the Wipro Chairman has written now could have been issued at that point in time. Fundamentally, shareholders have a right to know of such an event.

Yes. Sujjain Talwar,
Partner, Economic Laws Practice In India, companies are not obliged to disclose every detail of their business issues. It’s the right of the board to decide where to draw the line. Since it was not a violation of law and merely a general disagreement with the World Bank guidelines, the issue of corporate governance doesn’t arise.

—Compiled by Manu Kaushik