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Clause 49 Of Listing Agreement Independent Directors

In addition, anyone who serves as a full-time director of a publicly traded company must serve as an independent director in no more than three publicly traded companies; If we compare this new amended clause to the previous clause of the Companies Act 1956, we will find that this new clause is intended to increase transparency and preserve the interest of stakeholders, given that a new detailed provision of the independent director has been inserted, that the role of the audit committee has been improved, etc. The coercion of at least one women`s director is that the Ministry of Women`s Empowerment is working. The audit committee is a board of directors responsible for overseeing the accounting process, selecting an independent auditor, and receiving audit results from internal and external auditors. The committee assists the Board of Directors in implementing its corporate governance and in controlling responsibilities for a company`s internal control system. Article 49 of the listing agreement applies to companies that wish to be listed on the stock market. This clause contains both binding and non-binding provisions. The main binding provisions are: committees should consider assigning a sufficient number of non-executive members of the Board of Directors, capable of independently assessing tasks that may be subject to conflicts of interest; In accordance with the amended Clause 49, a „related party” is a person or organization related to the company. Parties are considered to be related when a party is able to control the other party or exert a significant influence on the other party, directly or indirectly, when making financial and/or operational decisions, and includes: i.e. a person or a close family member of that person, if that person (a) is a related party pursuant to Section 2(76) of the Corporations Act, 2013; or (b) joint control or control or has a significant influence on the business; (c) is a key management staff of the parent company or company; Unlike the Companies Act of 1956, which provides for an exemption from compliance where transactions have been made on the basis of the length of the procedure and in the context of normal transactions, the revised Clause 49 incorporates into its ade any transaction involving related persons, whether a price is charged or not. Also under the revised Term 49, a transfer of resources, services or obligations between an entity is considered a transaction with related persons, contrary to the 2013 Corporations Act, which have a series of transactions defined under Section 188 of the Corporations Act, 2013, which are considered transactions with related persons. The company`s board of directors is at least one female director and at least fifty per cent of the board of directors made up of non-executive directors; An independent director may be a member of the board of directors of a corporation for up to five (five) consecutive years and may be recognized for a new term of five (five) consecutive years from the granting of a special decision by the company.