Clause 49 Of Listing Agreement Slideshare

(b) all enterprises that were required to meet the requirement of clause 49, which is proposed for review, i.e. all listed companies with a share capital of Rs 3 Crores and more or net assets of Rs 25 Crores or more at any time in the history of the enterprise. Companies are required to comply with the requirement of the clause on or before March 31, 2004. Article 49 of the SEBI Guidelines on Corporate Governance, as amended on 29 October 2004, made substantial changes to the definition of independent directors, strengthened the responsibilities of audit committees, the quality of financial information, including that relating to transactions with related companies and revenues from preferential rights/issuances, the obligation for boards of directors to adopt a formal code of conduct, the requirement for certification of financial statements by the CEO/CFO and improved disclosure to shareholders. Some non-mandatory clauses, such as the whistleblower policy and the term limits of independent directors, have also been included. [1] The term “clause 49” refers to clause 49 of the listing agreement between a company and the exchanges on which it is listed (the listing agreement is identical for all Indian stock exchanges, including NSE and BSE). This clause is a further addition to the listing agreement and was only inserted in 2000, following the recommendations of the Kumarmangalam Birla Committee on Corporate Governance, established in 1999 by the Securities Exchange Board of India (SEBI). This is for all companies whose shares are listed on the stock exchange. All companies are required to file the listing contract of the stock exchange on which their shares are listed. Overall, India`s legal framework is part of international best practices in corporate governance. Section 118(10) of the Companies Act states that each company must comply with the secretarial standards established by the Institute of Company Secretaries of India with respect to general and board meetings. 4. .

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