Professional Documents
Culture Documents
Standard and Poor – “Corporate Governance is the way a company is organized and
managed to ensure that all financial stakeholders receive a fair share of the company’s
earnings and assets.”
Secretarial Standards :-
The Institute of Company Secretaries of India has issued the following Standards in
order to maintain the uniformity of procedure with regard to the Board Meetings, General
Meetings, Payment of Dividend, Maintenance of Registers and Records,
Recording of Minutes and Transfer and Transmission of Shares.
A brief detail of these standards is given as under : -
SS5 – Minutes
This Secretarial Standard deals with the recording and signing of Minutes of the
Meetings.
Minutes should contain :
(a) The appointment of the Chairman of the meeting.
(b) The presence of Quorum.
(c) The fact that certain registers and documents were available for inspection.
(d) The number of members present in person including representatives.
(e) The number of proxies and the number of shares represented by them.
(f) The presence of the Chairman of the Audit Committee at the Annual General
Meeting.
(g) The presence if any, of the Auditors, the Practising Company Secretary who issued
the Compliance Certificate, the Court appointed observers or scrutineers.
(h) Reading of the notice of the meeting.
(i) Reading of the report of the auditors.
(j) Summary of the opening remarks of the Chairman.
(k) Summary of the clarifications provided.
(l) In respect of each resolution, the type of the resolution, the names of the persons
who proposed and seconded and the majority with which such resolution was
passed. Resolutions should be written in the present tense.
SS6 – Transfer and Transmission of Shares
This Secretarial Standard deals with the procedure of Transfer and Transmission of
shares held singly and jointly. The register and records pertaining to transmission should
be preserved permanently and kept in the custody of the secretary of the company or
any other person authorized by the Board for the purpose.
Corporate Governance is beyond the realm of Law. It stems from the culture and
mindset of management and cannot be regulated by legislation alone. Corporate
Governance is all about openness, integrity and accountability.
It is a key element in improving the economic efficiency of the firm. Credibility offered by
Corporate Governance also helps in improving the confidence of the investors – both
domestic and foreign. It involves a set of relationships between a company’s
management, its Board, shareholders and Stakeholders.
All companies are required to submit a quarterly Compliance Report to the Stock
Exchanges within 15 days from the end of financial reporting quarter.
The Report has to be submitted by Compliance Officer or by the Chief Executive Officer
after obtaining due approvals, on the following clauses :-
Board of Directors
Audit Committee
Shareholders/ Investors Grievance Committee
Remuneration of Directors
Board Procedures
Management
Shareholders
Report on Corporate Governance
- Transparency
- Accountability
- Disclosure
- Value Creation.
The Code of Business Conduct and Ethics helps ensuring compliance with legal
requirements and other standards of Business Conduct. All company Employees and
Trainees are expected to read and understand this code of ethics, comply with all
applicable policies and procedures, and ensure that all agents and contractors are
aware of, understand and adhere to these standards.
The Company expects all employees, agents and contractors to exercise good judgment
to ensure all employees, agents and contractors and to maintain competitive, efficient,
positive harmonious and productive Work Environment and business organization.
Insider Trading :-
Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or
stock options) by corporate insiders such as officers, key employees, directors, or
holders of more than ten percent of the firm's shares. Insider trading may be perfectly
legal, but the term is frequently used to refer to a practice, illegal in many jurisdictions, in
which an insider or a related party trades based on material non-public information
obtained during the performance of the insider's duties at the corporation, or otherwise
misappropriated.
3. No insider shall -
(i) either on his own behalf or on behalf of any other person, deal in securities
of a company listed on any stock exchange when in possession of any
unpublished price sensitive information; or