Tag: Corporate Governance
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Corporate Governance: India and China Compared
While a fairly extensive body of literature that compares India and China has developed in the economics and business spheres, comparative analyses of the legal regime in these two countries is somewhat nascent. In that regard, a new book China, India and the International Economic Order, edited by Professors M. Sornarajah and Wang Jiangyu at…
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More on Independent Directors
Can Independent Directors Appoint Alternates? Despite closely following developments in the law relating to independent directors (IDs) in the recent past, this question took me by surprise. Considering the special position of an ID, it seemed to me that an individual occupying that position is incapable of being substituted, even if that were temporary in…
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Independent Directors under the Companies Bill, 2009
The report of the Parliamentary Standing Committee on Finance (SCF) pays significant attention to the role of independent directors on Indian companies (particularly the listed ones). While it is not doubted that the existing system of independent directors requires further review and strengthening, the SCF’s recommendations seem to go the other extreme in advocating a…
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Parliamentary Standing Committee on Companies Bill, 2009
It has been reported that the Parliamentary Standing Committee on Finance has its made recommendations upon review of the provisions of the Companies Bill, 2009. Discussions reveal that in some areas the Standing Committee’s recommendations seek a reversal of the position stated in current version of the Companies Bill. On one hand, the standing committee…
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SEBI’s Domain Over Auditors of Listed Companies
Earlier this month, the Bombay High Court issued its judgment in the case of Price Waterhouse & Co. v. Securities and Exchange Board of India. The court ruled that SEBI possesses necessary powers to initiate investigations against an auditor of a listed company for alleged wrongdoing. Facts: A writ petition was filed before the Bombay…
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Regulating Bankers’ Pay
Consistent with international trends to impose greater regulation on executive compensation in banks, the Reserve Bank of India (RBI) has issued draft guidelines on compensation of whole time directors/ chief executive officers / risk takers and control function staff. This applies to private sector and local area banks and all foreign banks operating in India,…
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Academic Literature on Independent Directors in India
Events in Indian corporate governance that occurred starting January 2009 have spurred academic research on the role and effect of independent directors on corporate boards. While some findings indicate an important role for such directors on Indian companies, others are not so optimistic and call for greater reform of that institution. The purpose of this…
