The last one year has seen a spate of one-off compliance relaxations triggered by the COVID-19 pandemic. It ranges from reduced TDS rates on business income to dispensing with the need to hold a separate meeting of independent directors. This brings us to the moot question, should companies blindly use [...]
COVID-19 pandemic has made us realize the value of having strong immunity to prevent health mishaps due to infections. Strong immunity is required not only for good human health but also for good corporate governance. Corporates in chasing steep and ambitious goals need to avoid the pitfalls of taking shortcuts [...]
Companies, especially listed companies, are required to adopt and display on their websites about a dozen policies covering different elements of corporate governance like Policy on Directors Induction and Training Program, Insider Trading, Related Party Transactions, Materiality, Whistle-blowers, and Ombudsman, among others. While these policies are mandated by SEBI regulations or [...]
Independent Directors play a vital role in the current corporate governance setup, by being the conscience keepers of the company. Disconnected from monetary gains, they are expected to do what is right and not be swayed by personal material benefits. Further, with an assured tenure as independent director they cannot [...]
Related Party Transactions (RPT) are an integral part of the corporate world today. In the early stages of corporate history, RPTs were illegal and could not even be approved or ratified by unanimous shareholder resolutions. Due to practical difficulties faced by companies, at the beginning of the 20th century RPTs [...]
Prior to the COVID-19 pandemic, board meetings through video conference facility meant one or two members attending through the Video Conference (VC) and the majority attending in person. Post March 2020, Board meeting through VC means almost all members attend through it. Given this change, there is a need to [...]
Corporate Board Evaluation is a critical component of Good Corporate Governance, where the Board annually evaluates its effectiveness and identifies areas for enhancing its effectiveness. While it is mandated for listed companies and all public companies with paid-up share capital above Rs.25 crores, as a prudent measure it would be [...]
Board of Directors set the tone for the quality of governance and business performance of a company. A key factor determining the effectiveness and efficiency of the board is the calibre and conduct of its chairperson which is reflected in how they conduct meetings. In my three decades experience of [...]
Independent thinking is desirable for an individual, but essential in a professional. As a Director or Key Managerial Personnel (KMP) of a company, this requirement to think independently is enshrined in law and at times is required to be documented. A latent requirement when the going is smooth, it shields [...]
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