Company Law : Summary: The Directors’ Report is a crucial document required by the Companies Act, 2013, which mandates that every company&...
Company Law : In-depth understanding of the Director's Report under the Companies Act, 2013. Know what it includes, its importance, mandatory as...
Company Law : All of us have started experiencing the heat towards the compliance mechanisms being put up by the statutory/regulatory authoritie...
Company Law : The board of Directors is the supreme authority having the management and control of the affairs of a company. They have a fiducia...
SEBI : Key Takeaways of SEBI (Listing Obligations and Disclosure Requirements) (Third Amendment) Regulations, 2021 (LODR) SEBI vide its ...
SEBI : The requirement of appointment of woman director emanates from Section 149 of Companies Act, 2013. SEBI has mandated that listed ...
Company Law : The concept of Independent Director has been proposed in the Companies Bill, 2009. Clause 147 of the Bill, provides for duties of ...
Company Law : The Government has said that the Department of Public Enterprises has so far not issued any guidelines regarding the assessment of...
Company Law : The role of independent directors (IDs) on the board of Indian companies will be clarified in the new Companies Bill and their res...
Company Law : A parliamentary panel of experts studying the new Companies Bill is likely to come up with suggestions in this regard, said a corp...
Company Law : Sandeep Ahuja Vs Union of India & Ors. (Delhi High Court) The Petitioner is a Director in five companies. Due to non-filing of...
Company Law : Delhi HC sets aside director disqualification in Anjali Bhargava vs Union of India case. Reactivation of DIN and DSC ordered for C...
Company Law : The issue under consideration is whether the ROC is correct and empowered to deactivate the Director Identification Number (DIN) o...
Company Law : Companies Fresh Start Scheme, 2020 provides an opportunity for active companies who may have defaulted in filing of documents, to ...
Corporate Law : These 18 appeals, by special leave, are directed against he common judgment and order dated September 6, 2007 passed by Calcutta H...
Company Law : It is hereby clarified that non-compliance of minimum residency in India for a period of at least 182 days in a year, by at least ...
Company Law : AOC-4 certification by the Chartered Accountant or the Company Secretary or as the case may be by the Cost Accountant, in whole- t...
Service Tax : Payments termed as ‘commission’ made to a Managing Director/ Directors, whether whole-time or independent, would not be ‘com...
The role of independent directors (IDs) on the board of Indian companies will be clarified in the new Companies Bill and their responsibilities will be made finite in terms of what they are answerable for, said Union Corporate Affairs Minister Salman Khurshid.
A parliamentary panel of experts studying the new Companies Bill is likely to come up with suggestions in this regard, said a corporate affairs ministry official, requesting anonymity. The development assumes significance in the wake of the government’s renewed efforts to quicken the share sales of many state-owned firms that are hamstrung by the lack of a requisite number of independent directors on boards. Market regulator Sebi’s guidelines require that 50% of a company board should be stuffed with independent directors.
The Government has said that the Companies Act, 1956 does not provide for appointment of Independent Directors. But, as per clause 49 of the Listing Agreement, all the listed companies are required to appoint Independent Directors. Giving this information in written reply to a question in the Lok Sabha today, the Minsiter for Corporate Affairs,
A Director includes any person occupying the position of Director, by whatever name called [Sec.2 (13)]. Directors occupy a key position in the management of the company. While they are entrusted with wide powers they are also accountable to the company.
The government may empower independent directors and company secretaries to enforce corporate governance norms, having made compliance voluntary for enterprises. The Institute of Company Secretaries of India (ICSI), a statutory body set up by the government, has suggested a set of best practices that company secretaries on board of companies have to follow.
The Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI) have urged the government to lay down guidelines for independent directors, including their terms of appointment, responsibilities and tenure in the company.
The Department of Public Enterprises (DPE) has taken the initiative to build and maintain a database of incumbents of Boards of Directors of CPSEs. In its Results Framework Document for the year 2009-10, DPE had committed to launch an online portal for database of Directors of CPSEs by 15th March, 2010.
With the aggressive disinvestment of PSUs being planned for the coming months, the government is likely to introduce a fixed time-frame during which the nomination of independent directors should be completed by state-run companies.
The Institute of Company Secretaries of India (ICSI) has recommended to the Government that the maximum number of listed companies where one can be a director be restricted to seven. ICSI has also mooted capping the tenure of independent directors at six years. In its report on ‘Strengthening Corporate Governance Framework’ submitted to the Corporate Affairs Minister, Mr Salman Khursheed, ICSI suggested a clear demarcation of the roles and responsibilities of the Chairman of the Board and that of the Managing Director/CEO.
While in most of the countries in the world, the top executives are trying to survive their jobs and positions and while this is the first time when maximum CEOs are hated by their shareholders, the independent Directors are trying to run away from their current position. One of the reports of Economic Times says that, since Satyam scandal and Nagarjuna case, “there are over 500 independent directors in India who have resigned from their respective positions on the Board citing reasons ranging from ill-health to work pressures”.
