The concept of negative consent contemplates a request being made by the recipient of the document to reply only in case of any discrepancy or non-agreement with the contents of the document. It implies that if the recipient is in agreement with the subject matter or the contents of the document, there is no need....
A Statutory Auditor is a person authorised to review and verify the accuracy of financial statements of a company and to inter alia ensure that the company complies with the prescribed Accounting Standards. He/ She has the responsibility of assuring the stakeholders, especially the shareholders, that the financial statements represent a true and fair picture....
An Annual General Meeting (AGM) is a very important annual event for companies and their shareholders. It is the platform on which the Directors and management of the company interact with the shareholders of the company. It is an opportunity for – the Board of Directors to directly interact with the shareholders of the company, and to....
It has been 6 years since performance evaluation of the Board, its committees, the Chairperson of the Board and individual Directors was mandated in India through the Companies Act, 2013 (which came into effect on April 1, 2014). Post coming into effect of this provision, the immediate reaction of a number of Directors was – “Why....
Each time there is a financial scam, Statutory Auditors come into limelight. What also comes into focus is whether joint audits are the solution to such scams. Joint audits are audits where more than one audit firm is appointed to conduct the audit of a company. They are used internationally in countries such as France,....
A term that has gained significance in the last couple of years is ESG. ESG refers to Environmental, Social and Governance criteria, used by the investors to evaluate the companies in which they want to invest or continue staying invested. Environmental criteria refer to a company’s efforts towards climate conservation, energy conservation, natural resource conservation,....
A sound Corporate Governance structure is essential for a company to function effectively. It promotes transparency, accountability, fairness and independence. Regulation in India Indian companies are regulated by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI). MCA monitors all Indian companies, whether public or private, through the Companies Act, 2013....
Shareholder activism is the concerted manner by which shareholders of a company can influence its actions or behaviour, by exercising their rights as owners of the company. While minority shareholders do not run the day-to-day operations of a company, there are several ways by which they influence the actions of the company’s board of directors....
Board Committees A Board committee is a small group of Board members, identified by the Board, for the purpose of diving deep into specific tasks/ assignments that are assigned to it by law or by the Board. Members of the committee are expected to have an understanding of specific fields relating to the work of....
Who is a Nominee Director? A Nominee Director is an individual nominated by an institution, including a bank/ financial institution/ private equity firm etc, on the Board of a company in which such an institution has some ‘interest’. The ‘interest’ can be in the form of financial assistance, such as in the form of a....