What is Clause 49 of the Listing Agreement?

What is Clause 49 of the Listing Agreement?

The term ‘Clause 49’ refers to clause number 49 of the Listing Agreement between a company and the stock exchanges on which it is listed (the Listing Agreement is identical for all Indian stock exchanges, including the NSE and BSE). A limit was placed on the number of committees that a director could serve on.

What are some of the important elements of Clause 49 agreement?

This clause has both mandatory and non-mandatory provisions. Key Mandatory provisions are as follows: Composition of Board and its procedure – frequency of meeting, number of independent directors, code of conduct for Board of directors and senior management; Audit Committee, its composition, and role.

What are the provisions of Clause 49 on audit committee?

The audit committee shall have minimum three directors as members. Two-thirds of the members of audit committee shall be independent directors. ii. All members of audit committee shall be financially literate and at least one member shall have accounting or related financial management expertise.

Which of the following include Clause 49 in the listing agreement?

The recommendations of Kumar Mangalam Birla Committee, constituted by SEBI, led to the addition of Clause 49 in the Listing Agreement in February 2000. These recommendations, aimed at improving the standards of corporate governance are divided into mandatory and non mandatory recommendations.

Which of the following is the major amendment in Clause 49 in board composition by April 2015?

The revised Clause 49 mandates a special resolution, except in cases where a scheme or arrangement has been duly approved by a court/tribunal, to dispose of shares in its material subsidiary which would reduce the shareholding to less than 50% or results in loss of control over the subsidiary.

Which one of the following is not a code of corporate governance?

Which of the following is not a code of corporate governance? The Sarbanes–Oxley.

Which of the following is the major amendment in clause 49 in board composition by April 2015?

Which of the following is are feature of corporate governance * 2 points?

Corporate Governance has a broad scope. It includes both social and institutional aspects. Corporate Governance encourages a trustworthy, moral as well as ethical environment.