InvestorQ : What happens to the unit holders of Templeton now that the e-voting is not happening?
Sam Eswaran made post

What happens to the unit holders of Templeton now that the e-voting is not happening?

Answer
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swati Bakhda answered.
3 months ago


It is not very clear as to what happens to the unit holders but what the AMC was trying to achieve through the e-voting was clearly unfair to the unit holders. Eventually, under pressure from the unit holders and the Gujarat High Court, Franklin opted to put its e-voting for the six liquidated funds on hold. This is significant because the e-voting was supposed to happen between 09 Jun and 11 Jun. Templeton had given the unit holders only two choices; to accept the valuation of the fund or to opt for Deloitte to value the assets. Either ways, the unit holders stood to lose and they will have to give assent to the transaction without really knowing the outcome. Also, the e-voting would close other options to the unit holders. Gujarat High Court refused to vacate the stay, leaving Franklin Templeton with no choice. It may be recollected that on the 26 April Franklin Templeton had summarily announced the winding up of six of its debt schemes due to bad credit fund decisions. Instead of taking responsibility for the bad decisions, the fund was trying to put the onus on the unit holders. That is the reason, the Gujarat High Court also refused to vacate the stay on the voting forcing Templeton to withdraw the e-voting offer.