BharatPe Claw Back Shares From Ex-MD Ashneer Grover

BharatPe will reclaim restricted shares of a 'previous founder' on Tuesday. It is evident that the firm was referring to its co-founder and previous MD Ashneer Grover.
BharatPe Claw Back Shares From Ex-MD Ashneer Grover
BharatPe Ex-MD Ashneer Grover

According to the company's shareholder agreement, fintech startup BharatPe will reclaim restricted shares of a 'previous founder' on Tuesday. According to an ET article, the corporation announced in a statement that it will "take actions to protect its legal rights."

While no names were mentioned in the statement, it is evident that the firm was referring to its co-founder and previous MD Ashneer Grover, who departed the company in March following a month-long scandal.

BharatPe Also Fired Some Workers and Brought Criminal Charges

BharatPe Also Fired Some Workers

According to Indian Express, the corporation has also fired some workers and contractors and brought criminal charges against them for misbehavior.

"If necessary, the business will file criminal complaints against some of these workers for wrongdoing and acts of cheating perpetrated against the company," stated BharatPe in a statement.

Without identifying Grover, BharatPe stated that legal action had been taken against the former founder to recover his limited shares.

"Many suppliers that engaged in malpractice, such as inaccurate or inflated bills, have been barred from doing business with the organization in the future. According to IndianExpress, "the corporation has already filed legal notifications to these suppliers to collect the payment and would be bringing civil or criminal actions against them in the coming days."

According to ET, the corporation has also terminated the services of numerous individuals in departments that were directly associated with these vendors.

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BharatPe Governance Change Over the Fight of Shares

According to BharatPe's legal document outlining firm management regulations, if a founder departs his position without the board's agreement, the company will purchase back the shares at a price less than their fair market worth.

In March 2022, ET reported that Ashneer Grover owned around 8.5 percent of BharatPe. 1.4 percent of this is not vested.

The restricted shares are defined by the corporation as 75% of the founder's shares.

Ashneer Grover Unexpectedly Resigned from BharatPe and its Board on March 1st, 2022

Ashneer Grover unexpectedly resigned from BharatPe and its board on March 1st, 2022, stating he had been "vilified" and handled in the "most insulting manner."

Grover quit minutes after hearing the agenda for an impending board meeting at which the PWC report was to be given, according to BharatPe.

According to a statement issued by BharatPe on Tuesday, the firm has been working on its code of conduct to remove the conflict of interest inside the organization.

Grover's wife, Madhuri Jain, was sacked as the company's head of procurement on grounds of misappropriation of cash,' ET reported on February 23rd, 2022.

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