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Control on HPCL to stay

New Delhi, July 21 (PTI): The government will hold veto power on all crucial decisions in the privatised Hindustan Petroleum Corp Ltd (HPCL) through ‘golden share’ clause in the share-holders agreement. According to the draft shareholders agreement circulated among half-a-dozen suitors for the government’s 34.01 per cent stake in HPCL, the state would have two directors on the oil refiners’ 12-member board whose consent would be needed even for decisions like declaration of dividend.

Special clauses have been inserted in the shareholders agreement to prevent the strategic investor from altering the company’s memorandum of association, changing its share capital, winding up the company, disposing of existing assets and pursuing a new line of business.

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