Mumbai, Dec. 28
STOCK exchanges today said that companies would have to comply with the Clause 49 of the Listing Agreement relating to the appointment of independent directors on their boards from January 1.
The BSE and the NSE said that all listed companies should strictly comply in letter and spirit with the revised Clause 49 of the listing agreement.
There have been media reports that stock exchanges might relax or extend the time for appointing independent directors especially for public sector companies.
This is due to the inability of various companies to find suitable professionals who can be appointed as independent directors.
Clause 49 will not be applicable for company with paid-up capital of less than Rs 3 crore or net worth of less than Rs 25 crore.
The amended Clause 49 aims to usher in better corporate governance processes thus enhancing value of all stakeholders.Related Stories:
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Key provisions under Clause 49