Govt mulls stricter disclosure norms for independent directors
PrintListen to this Article
Independent directors have significant responsibilities under the Companies Act and are part of various committees, including those related to CSR and remuneration. The role of independent directors has come under the scanner in certain instances of corporate misdoings.
"We will not do anything that will become burdensome and counter productive. Whatever we will do, we will do that is absolutely necessary and in the interest of everyone," he told PTI.
According to him, there would be some disclosure requirements when a person resigns as an independent director.
"What should be that disclosures, timing and within how many days... those will be part of rule framework and it is being done after elaborate deliberations with the stakeholders," he added.
In efforts to further strengthen the regulatory framework for independent directors, the ministry is also working to ensure that individuals have certain basic qualification to be eligible for independent directorship.
There has to be a basic qualification for individuals to become independent directors and the ministry would give "a carve out for people who have acquired knowledge by experience such as already holding a board position. In such cases, the individual need not have minimum formal qualification", Srinivas said.
One of the proposals being looked is to have a 60-hour online course on self-study mode for individuals wanting to be independent directors. Then clearing an examination would make them eligible for independent directorship.
The ministry is open to both options -- one is having an external examination and another is to undergo self study and self test, he said, adding that existing directors will have some easy pathway to comply with.
The ministry is planning to make the Indian Institute of Corporate Affairs (IICA) as designated institution for registration of independent directors. #casansaar (Source - Economic Times)
Category : Companies Act | Comments : 0 | Hits : 357
In a bid to prevent Chinese companies from circumventing Indian laws to do business in the country, the government has come up with a notification that requires land border-sharing nations' citizens who are appointed as directors on boards of companies to obtain a security clearance. According to a notification issued by the Ministry of Home Affairs on June 1, if a person from countries that share a land border is seeking an appointment in an Indian company, "nece...
Lok Sabha on Saturday passed a bill to further amend the Companies Act and decriminalise various compoundable offences as well as promote ease of doing business in the country. The Companies (Amendment) Bill, 2020 seeks to decriminalise various penal provisions, permit direct overseas listing of Indian corporates and introduce a new chapter related to producer organisations in the legislation. Reduction in penalties for certain offences as well as in timeline for rights issues, relaxation ...
The Ministry of Corporate Affairs (MCA) has information of the companies which have violated the provisions of Company Law. This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, in response to a written question in the Lok Sabha today. MCA either directly or through Regional Directors (RDs)/ Registrar of Companies (ROCs) receive complaints against companies from public (Individual/entities), from other Ministries etc., which are ex...
Government of India Ministry of Corporate Affairs (PI Section) Invitation for Public Comments on Draft Valuers Bill, 2020 Ministry of Corporate Affairs had constituted a Committee of Experts (CoE) under the Chairpersonship of Shri M. S. Sahoo, Chairperson, Insolvency and Bankruptcy Board of India (IBBI) on 30th August 2019 to examine the need for an institutional fra...
The Supreme Court has issued non-bailable warrants against managing directors of 32 companies for not complying with its order. The managing directors now face imminent arrest and will have to be produced in the top court by the Mumbai Police if they fail to get preventive orders. The list of defaulting companies includes Akshar Mercantile, Beta Trading, Vinay Mercantile, Anoop Multitrade, Anshul Mercantile, Everfame Trading, Highzone Trading, Inorbit Trading Co., Laksh Mercantile, M...
Comments