Clause 49 Of Listing Agreement Notes

Clause 49 Of Listing Agreement Notes

Article 49 of the SEBI Guidelines on Corporate Governance, as amended on 29 October 2004, made substantial changes to the definition of independent directors, strengthened the responsibilities of audit committees, the quality of financial information, including that relating to transactions with related companies and revenues from public preferential rights/issuances, the obligation for boards of directors to adopt a formal code of conduct, the requirement for certification of financial statements by the CEO/CFO and improved disclosure to shareholders. Some non-mandatory clauses, such as the whistleblower policy and the term limits of independent directors, have also been included. Article 49 also applies to other listed companies that are not companies, but entities, or that are subject to other laws (e.g. B banks, financial institutions, insurance, etc.). Clause 49 applies to the extent that it does not violate their respective laws and guidelines of the competent supervisory authorities. If we compare this new amended clause to the previous clause of the Companies Act 1956, we will find that this new clause aims to improve transparency and safeguard the interests of stakeholders, since a new detailed provision of the independent director has been inserted, the role of the audit committee has been improved, etc.