WEB creACTIVITY.ro

Clause 49 Of Listing Agreement Meaning

by on Dec.05, 2020, under Uncategorized

If we compare this new amended clause to the previous clause of the Companies Act 1956, we will find that this new clause is intended to increase transparency and preserve the interest of stakeholders, given that a new detailed provision of the independent director has been inserted, that the role of the audit committee has been improved, etc. The coercion of at least one women`s director is that the Ministry of Women`s Empowerment is working. Compliance – The company receives an annual certificate of activity from a legal auditor or a business secretary practising on compliance with clause 49 of the list agreement. In 2014, Term 49 was amended to include whistleblower policy as a binding provision. Disclaimer: The above requirements have been compiled from the list agreement available on the BSE website. It is only for reference and teaching purposes. Maybe that`s a misinterpretation of my part. Therefore, in order to implement the necessary compliance, it is necessary to go through each of the clauses of the listing contract signed by the company. The main reason for this clause is that the company should be fair to its stakeholders. Everything in the business must be done efficiently and fairly.

Because stakeholders have a social and financial interest in the business, the company is required to protect its interests. The company`s code of conduct must include the obligations of independent directors in accordance with the law. An independent director is responsible for the actions of a company that occur to his or her knowledge or when an independent director does not respond attentively to the requirements of the listing agreement. “Corporate governance aims to maintain a balance between economic and social objectives as well as individual and local objectives. The governance framework is intended to promote the efficient use of resources and to require responsibility for the management of these resources. The aim is to coordinate the best interests of individuals, businesses and society. -Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992 The fundamental criterion on which the entire list of agreements is based is corporate governance. Currently, there are 54 clauses in the list agreement and all on the basis of that concept. In addition, there is a clause dealing specifically with corporate governance, namely: Clause 49.

Listing involves the admission of securities to trading on a recognized exchange. Securities can be limited companies, central or state governments, quasi-state institutions and other financial institutions/capital companies, municipalities, etc. The main objectives of the listing are: – the provision of liquidity to the securities; Mobilizing savings for economic development; Protect the interests of investors by ensuring full disclosure. A company wishing to contribute its securities on the stock exchange is required to apply in the form prescribed on the Stock Exchange prior to the issuance of the prospectus by the Company, if the securities are issued by prospectus or before the issuance of the “offer to sell” when the securities are issued by offer of sale. The fundamental criterion on which the entire list agreement is based is corporate governance. Currently, there are 54 clauses in the list agreement and all on the basis of that concept. In addition, there is a clause dealing specifically with corporate governance, namely: With Article 49. As part of a list agreement, the Stock Exchange, on behalf of SEBI, ensures that companies follow good business governance practices. Therefore, the list agreement is of great importance and takes place under the common seal of a company. Under the list agreement, the company is required to provide certain information and perform certain acts, otherwise the company may be threatened with disciplinary sanctions, including suspension/list of securities.


Comments are closed.

Looking for something?

Use the form below to search the site:

Still not finding what you're looking for? Drop a comment on a post or contact us so we can take care of it!

Blogroll

A few highly recommended websites...