Aiming to impart equitable treatment with minority and foreign shareholders in a listed set of companies, Sebi has now come up with detailed corporate governance norms.
This will be effective from first of October. According to this, to make any sort of party transaction, it is necessary for the companies to have formal approval from its shareholders, the companies should follow whistle blower mechanism, give a brief on pay packages and it is necessary for them to have at least one women director on board.
Each one of these norms from Sebi complies with ‘new companies act’. They ultimately aim at encouraging the companies to adopt and follow the best of all practices on corporate governance. Few changes were made in 35B and 49 clauses by the capital market. According to the revised clauses, shareholders should be provided the option of e-voting while proposing resolutions during general meetings.
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