An Independent Director (ID) is appointed on the Board of a company to bring independent opinion and objectivity to the process of decision-making. She/he is also expected to help improve the Corporate Governance standards of the company. While there is a lot of focus on the compensation that some IDs receive, the position comes with....
As per Global Reporting Initiative (GRI), “A sustainability report is a report published by a company or organization about the economic, environmental and social impacts caused by its everyday activities. A sustainability report also presents the organization’s values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global....
In 2014, India became the first country to create a statutory obligation for companies to spend a part of their profits on Corporate Social Responsibility (CSR) initiatives. The rationale for this was that companies should give back to society. Schedule VII of the Companies Act, 2013 (the Act), lists the permissible activities which can be....
Whistleblowing is the act of reporting any unethical activity or wrongdoing, such as fraud or corruption, within a company. The person who raises this red flag is called a whistleblower. Whistleblowing can be done by a Director or an employee or by outside persons such as auditors, vendors, contractors, suppliers or consultants. A strong whistleblower....
Succession planning refers to the process of identifying critical positions in a company, and putting in place action plans for persons to assume such positions, when they become vacant. This involves identifying and preparing future leaders for ensuring effective business continuity, without any disruption. Such vacant positions may occur due to planned separation such as....
Audit Committee (AC) is one of the most important committees of the Board. It is expected to perform a number of vital functions. However, a number of ACs are reportedly underperforming on account of a variety of reasons. These include – Composition of the AC – Audit Committee has a variety of roles and responsibilities....
Risk Management Committee (RMC) is one of the most important committees of the Board. It is expected to look at risk, and how to mitigate or manage it. A number of RMCs are underperforming on account of a variety of reasons. These include – Composition of RMC – Until recently, regulations did not require the....
Nomination and Remuneration Committee (NRC) is one of the most important committees of the Board. It is expected to perform a number of vital functions relating to both appointment and remuneration of the Directors and the management. However, a number of NRCs are reportedly underperforming on account of a variety of reasons. These include –....
For a board meeting to be productive and value adding, the Directors should discuss strategic matters, as well as matters relating to the business of the company. These discussions include, but are not limited to, approvals, procedures to be adopted and future prospects relating to the business. Convening and conducting a Board meeting, is a....
Sub-regulation 2 of Regulation 24A of SEBI (LODR) Regulations, 2015 provides for the submission of secretarial compliance report by listed entities on an annual basis within 60 days from the end of each financial year, in such form as specified. While the annual secretarial audit covers status of compliance with all laws, rules and regulations....