corporate law- board of directors

8/17/2019 Corporate Law- Board of Directors

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CHANAKYA NATIONAL LAW UNIVERSITY

CORPORATE LAW- I

Project Report on:

BOARD OF DIRECTORS

Submitted to: Mrs. Nandita Jha (ac!"t# $or Corporate La%&

Submitted by: An!'h!ti ar)a

Ro"" no.-*+,

II e)ester.


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ACKNOWLEDGEENT

Apart $ro) the /race o$ a")i/ht# )an# peop"e ha0e 'een pro$!se"# /enero!s and he"p$!"

to )e in the co!rse o$ )# research ten!re1 I cannot e2tend )# /ratit!de in a sin/"e direction '!t %i""

ha0e to 'esto% )# than3s '"osso)s '# '"osso)s !pon a $e% i$ not a"" persons %ho do )erit a

specia" 3ind o$ tri'!te '# 0irt!e o$ their assistin/ )e a"on/ the %a#. In the $irst p"ace I $ee"

tre)endo!s"# e2cited in recordin/ )# )ost sincere and pro$o!nd /ratit!de to )# adroit s!per0isor

Mrs. Nandita Jha (ac!"t# $or Corporate La%&. I %o!"d "i3e to )a3e sincere pra#er 'e$ore

a")i/ht# $or hi) %itho!t his '"essin/s in0a"!a'"e /!idance inte""ect!a" inspiration and perpet!a"

enco!ra/e)ent1 I co!"d not ha0e acco)p"ished and presented this %or3 in the present $or). I o%e

)# sincere than3s to Li'rar# sta$$ )e)'ers o$ 4ni0ersit# $or their assistance and cooperation to

$ind o!t the re"e0ant )ateria" $or )# research.

An!'h!ti ar)a

II e)ester.

RESEARCH ETHODOLOGY

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SUB!ECT: Corporate La%- I

TO"IC: 5oard o$ 6irectors

OB!ECTIVES: The )ain o'jects o$ )# st!d# are:

i& To ascertain the concept o$ 5oard o$ 6irectors as per Co)panies Act+7,8

ii& To cond!ct a detai"ed st!d# %ith re/ard to the pro0isions )entioned theirein.

RESEARCH ETHODOLOGY: 6octrina" research )ethodo"o/# has 'een !sed. 9eepin/ the

o'jecti0es in )ind )ateria" %as co""ected %ith the he"p o$ di$$erent 'oo3s and then it %as co)pi"ed to

)a3e the theoretica" part o$ the project. econdar# so!rces %ere a"so !ti"ied in order to co)p"ete the

o'jecti0e.

RESEARCH TOOLS: The research o$ this project %as carried %ith the he"p o$ the Internet and Li'rar#

o$ Chana3#a Nationa" La% 4ni0ersit#.

FOOTNOTING STYLE: In %ho"e o$ )# project !ni$or) $ootnotin/ st#"e has 'een adopted.

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CONTENTS

,. Introd!ction ;

+. Appoint)ent and

?.

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I#t$odu%tio#

A 'oard o$ directors is a 'od# o$ e"ected or appointed )e)'ers %ho joint"# o0ersee the acti0ities

o$ a co)pan# or or/aniation. Other na)es inc"!de 'oard o$ /o0ernors 'oard o$

)ana/ers 'oard o$ re/ents 'oard o$ tr!stees and 'oard o$ 0isitors. It is o$ten si)p"# re$erred toas @the 'oard@.

A 'oards acti0ities are deter)ined '# the po%ers d!ties and responsi'i"ities de"e/ated to it or

con$erred on it '# an a!thorit# o!tside itse"$. These )atters are t#pica""# detai"ed in the

or/aniations '#"a%s. The '#"a%s co))on"# a"so speci$# the n!)'er o$ )e)'ers o$ the 'oard

ho% the# are to 'e chosen and %hen the# are to )eet. Bo%e0er these '#"a%s rare"# address a

'oards po%ers %hen $aced %ith a corporate t!rnaro!nd or restr!ct!rin/ %here 'oard )e)'ers

need to act as a/ents o$ chan/e in addition to their traditiona" $id!ciar# responsi'i"ities.

,

In an or/aniation %ith 0otin/ )e)'ers the 'oard acts on 'eha"$ o$ and is s!'ordinate to the

or/aniations $!"" /ro!p %hich !s!a""# chooses the )e)'ers o$ the 'oard. In a stoc3

corporation the 'oard is e"ected '# the shareho"ders and is the hi/hest a!thorit# in the

)ana/e)ent o$ the corporation. In a non-stoc3 corporation %ith no /enera" 0otin/ )e)'ership

the 'oard is the s!pre)e /o0ernin/ 'od# o$ the instit!tion1 + its )e)'ers are so)eti)es chosen

'# the 'oard itse"$.

T#pica" d!ties o$ 'oards o$ directors inc"!de:

• /o0ernin/ the or/aniation '# esta'"ishin/ 'road po"icies and o'jecti0es1

• se"ectin/ appointin/ s!pportin/ and re0ie%in/ the per$or)ance o$ the chie$ e2ec!ti0e1

• ens!rin/ the a0ai"a'i"it# o$ ade!ate $inancia" reso!rces1

•

appro0in/ ann!a" '!d/ets1

1 Anderson Ra#)ond1 a%#er B!/h. @The Board of Directors as an Agent of Change in Turnarounds@.

Transaction Ad0isors. IN +8+=-=,8>

2 Ro'ert III Benr# M.1 Wi""ia) J. E0ans1 6anie" B. Bone)ann1 Tho)as J. 5a"ch (, Octo'er

+777&. Robert's Rules of Order Newly Revised . Ca)'rid/e MA: 6a Capo Press.I5N 7-*8D+-787*-?

5

https://en.wikipedia.org/wiki/Companyhttps://en.wikipedia.org/wiki/Organizationhttps://en.wikipedia.org/wiki/Board_of_governorshttps://en.wikipedia.org/wiki/Board_of_regentshttps://en.wikipedia.org/wiki/Trusteeshttps://en.wikipedia.org/wiki/Bylawshttps://en.wikipedia.org/wiki/Bylawshttps://en.wikipedia.org/wiki/Stock_corporationhttps://en.wikipedia.org/wiki/Stock_corporationhttps://en.wikipedia.org/wiki/Stock_corporationhttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Authorityhttps://en.wikipedia.org/wiki/Non-stock_corporationhttps://en.wikipedia.org/wiki/Chief_executivehttps://en.wikipedia.org/wiki/Chief_executivehttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://en.wikipedia.org/wiki/International_Standard_Serial_Numberhttps://www.worldcat.org/issn/2329-9134https://www.worldcat.org/issn/2329-9134https://en.wikipedia.org/wiki/International_Standard_Book_Numberhttps://en.wikipedia.org/wiki/International_Standard_Book_Numberhttps://en.wikipedia.org/wiki/Special:BookSources/0-7382-0307-6https://en.wikipedia.org/wiki/Special:BookSources/0-7382-0307-6https://en.wikipedia.org/wiki/Organizationhttps://en.wikipedia.org/wiki/Board_of_governorshttps://en.wikipedia.org/wiki/Board_of_regentshttps://en.wikipedia.org/wiki/Trusteeshttps://en.wikipedia.org/wiki/Bylawshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://en.wikipedia.org/wiki/International_Standard_Serial_Numberhttps://www.worldcat.org/issn/2329-9134https://en.wikipedia.org/wiki/Stock_corporationhttps://en.wikipedia.org/wiki/Stock_corporationhttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Authorityhttps://en.wikipedia.org/wiki/Non-stock_corporationhttps://en.wikipedia.org/wiki/International_Standard_Book_Numberhttps://en.wikipedia.org/wiki/Special:BookSources/0-7382-0307-6https://en.wikipedia.org/wiki/Chief_executivehttps://en.wikipedia.org/wiki/Company


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• acco!ntin/ to the sta3eho"ders $or the or/aniations per$or)ance1

• settin/ the sa"aries and co)pensation o$ co)pan# )ana/e)ent1

The "e/a" responsi'i"ities o$ 'oards and 'oard )e)'ers 0ar# %ith the nat!re o$ the or/aniation

and %ith the j!risdiction %ithin %hich it operates. or co)panies %ith p!'"ic"# tradin/ stoc3

these responsi'i"ities are t#pica""# )!ch )ore ri/oro!s and co)p"e2 than $or those o$ other

t#pes.

T#pica""# the 'oard chooses one o$ its )e)'ers to 'e the chair)an %ho ho"ds %hate0er tit"e is

speci$ied in the '#"a%s or artic"es o$ association. The de0e"op)ent o$ a separate 'oard o$

directors to )ana/e the co)pan# has occ!rred incre)enta""# and inde$inite"# o0er "e/a" histor#.

4nti" the end o$ the ,=th cent!r# it see)s to ha0e 'een /enera""# ass!)ed that the /enera"

)eetin/ (o$ a"" shareho"ders& %as the s!pre)e or/an o$ the co)pan# and the 'oard o$ directors

%as )ere"# an a/ent o$ the co)pan# s!'ject to the contro" o$ the shareho"ders in /enera"

)eetin/.8

Bo%e0er '# ,=7? the En/"ish Co!rt o$ Appea" had )ade it c"ear in the decision o$ A!to)atic

e"$-C"eansin/ i"ter #ndicate Co Ltd 0 C!nin/ha)e ,=7?F + Ch 8> that the di0ision o$ po%ers

'et%een the 'oard and the shareho"ders in /enera" )eanin/ depended on the constr!ction o$

the artic"es o$ association and that %here the po%ers o$ )ana/e)ent %ere 0ested in the 'oard

the /enera" )eetin/ co!"d not inter$ere %ith their "a%$!" e2ercise. The artic"es %ere he"d to

constit!te a contract '# %hich the )e)'ers had a/reed that @the directors and the directors a"one

sha"" )ana/e.@

The ne% approach did not sec!re i))ediate appro0a" '!t it %as endorsed '# the Bo!se o$

Lords in


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contrar# to the "a% or the pro0isions o$ the Artic"es the po%ers o$ cond!ctin/ the )ana/e)ent

and a$$airs o$ the co)pan# are 0ested in the).

The )odern doctrine %as e2pressed in John ha% G ons (a"$ord& Ltd 0 ha%; '# Hreer LJ as

$o""o%s:

A co)pan# is an entit# distinct a"i3e $ro) its shareho"ders and its directors. o)e o$ its po%ers

)a# accordin/ to its artic"es 'e e2ercised '# directors certain other po%ers )a# 'e reser0ed $or

the shareho"ders in /enera" )eetin/. I$ po%ers o$ )ana/e)ent are 0ested in the directors the#

and the# a"one can e2ercise these po%ers. The on"# %a# in %hich the /enera" 'od# o$

shareho"ders can contro" the e2ercise o$ po%ers '# the artic"es in the directors is '# a"terin/ the

artic"es or i$ opport!nit# arises !nder the artic"es '# re$!sin/ to re-e"ect the directors o$ %hose

actions the# disappro0e. The# cannot the)se"0es !s!rp the po%ers %hich '# the artic"es are

0ested in the directors an# )ore than the directors can !s!rp the po%ers 0ested '# the artic"es in

the /enera" 'od# o$ shareho"ders.

It has 'een re)ar3ed that this de0e"op)ent in the "a% %as so)e%hat s!rprisin/ at the ti)e as

the re"e0ant pro0isions in Ta'"e A (as it %as then& see)ed to contradict this approach rather than

to endorse it.?

tip!"ation and e"!cidation o$ the d!ties $!nctions and responsi'i"ities o$ the directors o$ a

co)pan# especia""# the p!'"ic "i)ited co)panies are %e"co)e and /reat contri'!tion o$ the

ne% co)pan# "a% o$ India the Co)panies Act o$ +7,8 to 'etter corporate /o0ernance and

sec!rit# and the 'est possi'"e /ro%th and prosperit# in the corporate %or"d o$ India. The $or)er

co)pan# "a% o$ India the Co)panies Act o$ ,=;? %as dis/!stin/"# de$icient in this respect. The

ne% CA-+7,8 can 'e seen as o$$erin/ a "and)ar3 piece o$ "e/is"ation in this re/ard %hich d!"#

and e2p"icit"# c"ari$ies rede$ines and en"ar/es the a)'it o$ d!ties and responsi'i"ities o$ the

directors. These ne%"# introd!ced pro0isions '# CA-+7,8 re/ardin/ the d!ties and

responsi'i"ities o$ the directors inc"!din/ the independent directors not on"# pro0ide /reater

5 ,=8;F + 95 ,,8

6 Principles of Copany !aw (?th ed.& at ,D;

7

https://en.wikipedia.org/wiki/John_Shaw_%26_Sons_(Salford)_Ltd_v_Shawhttps://en.wikipedia.org/wiki/John_Shaw_%26_Sons_(Salford)_Ltd_v_Shawhttps://en.wikipedia.org/wiki/Frederick_Greer,_1st_Baron_Fairfieldhttps://en.wikipedia.org/wiki/Table_Ahttps://en.wikipedia.org/wiki/John_Shaw_%26_Sons_(Salford)_Ltd_v_Shawhttps://en.wikipedia.org/wiki/Frederick_Greer,_1st_Baron_Fairfieldhttps://en.wikipedia.org/wiki/Table_A


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certaint# to the directors re/ardin/ their cond!cts and responsi'i"ities and th!s ens!rin/ 'etter

and i)pecca'"e corporate )ana/e)ent and /o0ernance1 '!t a"so ena'"e and e)po%er the

'ene$iciaries re/!"ators and the co!rts to j!d/e re/!"ate and contro" the acti0ities and

o'"i/ations o$ the directors )ore o'jecti0e"# and e$$ecti0e"#. O!rs this %e""-dra$ted %e'-artic"e

o$$ers 0er# !se$!" and $erti"e in$or)ation e2c"!si0e"# a'o!t these ne% pro0isions o$ the Indian

Co)panies Act o$ +7,8 connected %ith the ro"es d!ties and responsi'i"ities o$ the directors and

independent directors o$ p!'"ic "i)ited co)panies.

This pr!dent "e/is"ation o$ the CA-+7,8 o0er the d!ties and "ia'i"ities o$ the directors is $!rther

s!pported and s!pp"e)ented '# the re0ised corporate /o0ernance nor)s (Re0ised and Ne%

C"a!se >= o$ the Listin/ A/ree)ent& o$ E5I the ec!rities and E2chan/e 5oard o$ IndiaF in

order to 'rin/ the E5Is corporate /o0ernance nor)s in connection %ith the "isted co)panies inc"ose har)on# and consistenc# %ith the pro0isions o$ the CA-+7,8.

Whi"e the se0era" pro0isions o$ the CA-+7,8 re"ated %ith d!ties o$ directors ha0e 'een )ade

e$$ecti0e $ro) Apri" 7, +7,>1 the re0ised E5Is nor)s $or corporate /o0ernance are "i3e"# to 'e

in $orce $ro) Octo'er 7, +7,>.

Bere it )a# a"so 'e 'rie$"# j!st )entioned that the 6irectors are re/arded as 'ein/ the 9e#

Mana/eria" Persons o$ a co)pan# %ith specia" i)portance to the "isted co)panies. The# canho"d )!"tip"e hi/h and responsi'"e positions in the co)panies s!ch as the Mana/in/ 6irector

Mana/er Who"e Ti)e 6irector or an Independent 6irector. Th!s e$$icient $"a%"ess and rather

pro/ressi0e )ana/e)ent o$ a co)pan# and the desired /ro%th and pro$ita'i"it# o$ its '!sinesses

are certain"# "ar/e"# dependent on the co)petence and tr!st%orthiness o$ its directors. 5# the

%a# a 6irector )eans a 6irector appointed to the 5oard o$ a co)pan#1 and the 5oard o$ a

co)pan# represents the co""ecti0e 'od# o$ its directors.

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A&&oi#tme#t '#d (u')i*i%'tio# o* Di$e%to$+

With the ne% Co)panies Act the "a% has 'eco)e )ore strin/ent $or pri0ate co)panies than

$or p!'"ic co)panies1 Mo0in/ $ro) the Co)panies Act ,=;? to the Co)panies Act +7,8 is "i3e

shi$tin/ $ro) #o!r o"d ho!se to a ne% one. In the o"d ho!se %here #o! ha0e sta#ed $or #earse0er#thin/ %o!"d ha0e $o!nd its o%n p"ace the shoes the c"othes !)'re""a $irst aid 'roo)s

and %hate0er e"se #o! need in #o!r ho!seho"d. o!r "e/s can $ind their o%n %a# e0en in pitch

dar3 o$ ni/ht the# 3no% the %a# to the 'athroo) to the stairs the# e0en 3no% %here the

stairs end.

6irectors o$ a co)pan# ho"d the )ost cr!cia" position in the Co)pan#. With the ne% Co)panies

Act +7,8 (KNe% ActK& a"read# in $orce their position has 'eco)e e0en )ore si/ni$icant than

e0er 'e$ore. The# are no% $or)a""# inc"!ded %ithin the de$inition o$ K3e# )ana/eria" personne"

or K9MP !nder ection +(;,& o$ the Ne% Act.

As per ection ,>=(,&: E0er# Co)pan# sha"" ha0e a 5oard o$ 6irectors Consistin/ o$ Indi0id!a"s

as director. (It is c"ear to !nderstand $ro) this "ine that on"# an indi0id!a" can 'e director o$

co)pan#. o)e persons ha0e do!'t that other than indi0id!a" can 'e director or not&. Accordin/

to this section ONL AN IN6II64AL can 'e director o$ co)pan#. The 5oard sha"" consist o$

indi0id!a"s not o$ other persons "i3e $ir)s LLP co)panies /ods or other "e/a" persons.

i#imum No, o* Di$e%to$+ '+ &e$ Se%tio# -./0-10'1:2

• Three in case o$ P!'"ic Co)pan#.

• T%o in case o$ Pri0ate Co)pan#.

• One in case o$ One Person Co)pan#.

'3imum -4 Di$e%to$+ 0I* %om&'#y 5'#t to '&&oi#t mo$e t6'# -4 di$e%to$+ S&e%i')

Re+o)utio# Re7ui$ed to &'++ i# Ge#e$') meeti#819 "$o%edu$e Sim&)e "$o%e++ o* Ho)di#8 o*

E3t$'9O$di#'$y Ge#e$') eeti#8; 56i%6 5e u+e i# ot6e$ 'tte$+ ')+o1

7 Co)panies Act +7,8

9


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Ne5 C'te8o$ie+ o* Di$e%to$+:

• Re+ide#t Di$e%to$:

As per ection ,>= s!' section 8 o$ Co)panies Act +7,8 5oard o$ 6irectors o$ a co)pan# )!st

ha0e at "east one resident director i.e. (A person %ho has "i0ed at "east ,D+ da#s in India in the

pre0io!s ca"endar #ear&

As per Henera" Circ!"ar No. +;+7,> The residence re!ire)ent %o!"d 'e rec3oned $ro) the

date o$ co))ence)ent o$ section ,>= o$ the Act i.e. , st Apri" +7,> The $irst pre0io!s ca"endar

#ear $or co)p"iance %ith these pro0isions %o!"d there$ore 'e Ca"endar #ear +7,>. The period

to 'e ta3en into acco!nt $or co)p"iance %ith these pro0isions %i"" 'e the re)ainin/ period o$

ca"endar #ear +7,> i.e. ,st Apri" to 8,st 6ece)'er&.D

• There$ore on a proportionate 'asis the n!)'er o$ da#s $or %hich the director(s& %o!"d

need to 'e resident in India. 6!rin/ Ca"endar #ear.+7,> sha"" e2ceed ,8? da#s.

• Re/ardin/ Ne%"# Incorporated Co)panies it is c"ari$ied that co)panies incorporated

'et%een 7,.7>.+7,> to 87.7=.+7,> sho!"d ha0e a resident director either at the ti)e o$

incorporation OR %ithin si2 )onths o$ their incorporation.

• Co)panies incorporated a$ter 87.=.+7,> need to ha0e the resident director $ro) the date

o$ incorporation itse"$.

• Wome# Di$e%to$:

As per ection ,>= (,& (a& second pro0iso re!ires certain cate/ories o$ co)panies to ha0e At

Least One Wo)an director on the 'oard. !ch co)panies are an# "isted co)pan# and an# p!'"ic

co)pan# ha0in/-

,. Paid 4p Capita" o$ Rs. ,77 cr. or )ore or

+. T!rno0er o$ Rs. 877 cr. or )ore.

•I#de&e#de#t Di$e%to$:

Independent 6irector is $or the $irst ti)e introd!ced in the Co)panies Act +7,8 !nder section

,>=(?&

8 https://indiancaselaws.wordpress.com/category/corporatelaw/companiesact

2!13/. "ccessed on 22.!9.2!15.

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• Additio#') Di$e%to$+:

An# Indi0id!a" can 'e appointed as Additiona" 6irectors '# a co)pan# !nder section ,?, o$ the

Ne% Act.

• Nomi#ee Di$e%to$:

As per ection ,?,(8&. !'ject to AOA o$ co)pan# the 5oard Ma# appoint an# person as a

director no)inated '# an# instit!tion in p!rs!ance o$ the pro0isions o$ an# "a% $or the ti)e 'ein/

in $orce or o$ an# a/ree)ent or '# the Centra" Ho0ern)ent or the tate Ho0ern)ent '# 0irt!e o$

its shareho"din/ in a Ho0ern)ent co)pan#.( Accordin/ to ter): !'ject to AOA o$

co)pan# )eans there sho!"d 'e pro0isions in Artic"es o$ Association o$ Co)pan# $or

appoint)ent o$ No)inee 6irector i$ there is no pro0ision in Artic"es o$ co)pan# then a"ter the

pro0ision in AOA&.=

• A)te$#'te Di$e%to$+:

As per ection ,?,(+& A co)pan# Ma# appoint i$ the artic"es con$er s!ch po%er on co)pan#

or a reso"!tion is passed (i$ an 6irector is a'sent $ro) India $or at"east three )onths&.

• An a"ternate 6irector cannot ho"d the o$$ice "on/er than the ter) o$ the 6irector in

%hose p"ace he has 'een appointed.

• Additiona""# he %i"" ha0e to 0acate the o$$ice i$ and %hen the ori/ina" 6irector ret!rns to

India.

• An# a"teration in the ter) o$ o$$ice )ade d!rin/ the a'sence o$ the ori/ina" 6irector %i""

app"# to the ori/ina" 6irector and not to the A"ternate 6irector.

A&&oi#tme#t o* di$e%to$+ i# &$i


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The "i'ert# /i0en to pri0ate co)panies to se"$-re/!"ate the appoint)ent process has s!rprisin/"#

'een co)p"ete"# ta3en a%a# 4nder Co)panies Act-+7,8. This so!nds co)p"ete"# parado2ica" in

0ie% o$ the $act that in case o$ p!'"ic co)panies the# sti"" ha0e the "i'ert# to se"$-re/!"ate to the

e2tent o$ one third o$ the 'oard stren/th.

ec ,;+ (?& ('& pro0ides "i'ert# '!t on"# to p!'"ic co)panies to appoint one third o$ the tota"

'oard '# a se"$-re/!"ated process. Whi"e there %as an e2ception to pri0ate co)panies in ec. +;;

(+& o$ the ,=;? Act that e2ception has 'een dropped %hi"e transportin/ the pro0isions into the

ne% Act.

It co!"d not 'e the case that s!ch %as the intent o$ the "a%)a3er there is a'so"!te"# no case $or

i)posin/ )ore strin/ent re/!"ations in case o$ pri0ate co)panies than in case o$ p!'"ic

co)panies.

Se%tio# -4= o* t6e Ne5 A%t 8o+D7CorporateQHo0ernance6irectorsQ!nderQCo)paniesQActQ+7,8

QisQitQo"dQ%ineQinQne%Q'ott"e. Accessed on +8.7=.+7,;.

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"ROCEDURE:

• irst Chec3 %hether Artic"es (AOA& o$ the Co)pan# contain po%era!thoriation to

appoint Additiona" 6irector read %ith ection ,?,(,& o$ the Co)panies Act +7,8. I$

there is no pro0isions in Artic"es o$ the Co)pan# then A"ter the Artic"es o$ the co)pan#

to ha0e ena'"in/ c"a!se $or appoint)ent o$ Additiona" 6irector.

• econd Chec3 %hether s!ch person ha0e 6IN No. or Not. I$ s!ch person doesnt ha0e

6IN No. then App"# $or 6IN.

• o""o%in/ doc!)ents are re!ire $ro) director to appoint)ent hi) as additiona"

director.

• Consent in %ritin/ to act as 6irector in or) 6IR-+ p!rs!ant to R!"e-D o$ Co)panies

(Appoint)ent G -

• Inti)ation '# 6irector in $or) 6IR-D in ter)s o$ Co)panies (Appoint)ent G

to the e$$ect that he she is not dis!a"i$ied !s

,?>(+& o$ Co)panies Act +7,>.-

• 6isc"os!re o$ Interest in or) M5P-, p!rs!ant to ection ,D>(,& read %ith R!"e =(,& o$

Co)panies (Meetin/s o$ 5oard and its Po%ers& R!"es +7,>. One thin/ sho!"d 'e noted

M5P-, sho!"d not 'e dated ear"ier than date o$ hisher appoint)ent as 6irector.

• Bo%e0er i$ there is nothin/ to disc"ose on the part o$ ne% 6irector e0en then a"so

re!ire to ta3e $or) M5P-, $ro) 6irector. (NIL disc"os!re is a"so a disc"os!re !nder

section ,D>(,&.

A*te$ $e%ei


14/25

Reso"!tion. i"e $or) 6IR-,+ $or Chan/e in 6esi/nation o$ 6irector a"on/ %ith ordinar#

reso"!tion.

IF THE SECTION IS VIOLATED

ince the D-"a3h odd co)panies sittin/ %ith )ore than ,?-"a3h directors )a# not e0en 'e a%are

o$ this chan/e o$ "a% %hat is the pro0ision /ets 0io"ated There ection ,;= to ta3e care o$

pro0ides $or a jai" !p to si2 )onths %ith%itho!t a $ine.

14


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"OWER OF BOARD OF DIRECTORS:

Accordin/ to ection ,*= the 5oard o$ 6irectors o$ a co)pan# sha"" 'e entit"ed to e2ercise a""

po%ers and to do a"" acts and thin/s as the co)pan# is a!thorised to e2ercise and do. The 5oard

sha"" 'e s!'ject to restrictions i)posed !nder this Act or in Me)orand!) or Artic"es or an#

re/!"ation o$ the Co)pan#. The 5oard sha"" not e2ercise an# po%er %hich is re!ired to 'e

e2ercised '# the co)pan# in /enera" )eetin/.,,

No re/!"ation )ade '# the co)pan# in /enera" )eetin/ sha"" in0a"idate an# act o$ the 5oard

done prior to these re/!"ations co)e into e2istence and e$$ect.

Po%ers to 'e e2ercise in 5oard Meetin/ (ection ,*= !' ection 8&:

The 5oard sha"" e2ercise $o""o%in/ po%ers on"# '# )eans o$ reso"!tion passed in its )eetin/:

(a& to )a3e ca""s on shareho"ders in respect o$ )one# !npaid on their shares1

('& to a!thorise '!#-'ac3 o$ sec!rities !nder section ?D1

(c& to iss!e sec!rities inc"!din/ de'ent!res %hether in or o!tside India1

(d& to 'orro% )onies1

(e& to in0est the $!nds o$ the co)pan#1

($& to /rant "oans or /i0e /!arantee or pro0ide sec!rit# in respect o$ "oans1

(/& to appro0e $inancia" state)ent and the 5oards report1

(h& to di0ersi$# the '!siness o$ the co)pan#1

(i& to appro0e a)a"/a)ation )er/er or reconstr!ction1

(j& to ta3e o0er a co)pan# or ac!ire a contro""in/ or s!'stantia" sta3e in another co)pan#1

(3& an# other )atter %hich )a# 'e prescri'ed.

11 http:aish)/hrana.)e+7,87;8,po%er-o$-'oard-!nder-co)panies-act-+7,8. Accessed on

++.7=.+7,;

15

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16/25

The 5oard )a# '# a reso"!tion passed at a )eetin/ de"e/ate to an# co))ittee o$ directors the

)ana/in/ director the )ana/er or an# other principa" o$$icer o$ the co)pan# or in the case o$ a

'ranch o$$ice o$ the co)pan# the principa" o$$icer o$ the 'ranch o$$ice the po%ers speci$ied in

c"a!ses (d& to ($& on s!ch conditions as it )a# speci$#.

C"a!se (d& %hich dea"s %ith po%er to 'orro% )one# needs )an# e2p"anations. Nothin/ in this

c"a!se (d& sha"" app"# to 'orro%in/s '# a 'an3in/ co)pan# $ro) other 'an3in/ co)panies or

$ro) the Reser0e 5an3 o$ India the tate 5an3 o$ India or an# other 'an3s esta'"ished '# or

!nder an# Act. In respect o$ dea"in/s 'et%een a co)pan# and its 'an3ers the e2ercise '# the

co)pan# o$ the po%er speci$ied in c"a!se (d& sha"" )ean the arran/e)ent )ade '# the co)pan#

%ith its 'an3ers $or the 'orro%in/ o$ )one# '# %a# o$ o0erdra$t or cash credit or other%ise and

not the act!a" da#-to-da# operation on o0erdra$t cash credit or other acco!nts '# )eans o$ %hich

the arran/e)ent so )ade is act!a""# a0ai"ed o$.

Com&'#y to $e+t$i%t &o5e$ o* Bo'$d 0Se%tio# -2/; Sub ? Se%tio# .1:

The co)pan# in /enera" )eetin/ has po%er to i)pose restrictions and conditions on the e2ercise

'# the 5oard o$ an# o$ the po%ers speci$ied in this section.

Re+t$i%tio#+ o# "o5e$ o* Bo'$d 0Se%tio# -@>1:

The 5oard o$ 6irectors )a# e2ercise partic!"ar po%ers on"# %ith the consent o$ the co)pan#

/i0en '# %a# o$ specia" reso"!tion passed in /enera" )eetin/ o$ the co)pan#.

These are:

(a& To se"" "ease or other%ise dispose o$ the !nderta3in/1

('& To in0est other%ise in tr!st sec!rities the a)o!nt o$ co)pensation recei0ed '# it as a res!"t o$

an# )er/er or a)a"/a)ation1

(c& To 'orro% )one#1 and

(d& To re)it or /i0e ti)e $or the repa#)ent o$ an# de't d!e $ro) a director.

To +e)); )e'+e o$ ot6e$5i+e di+&o+e o* t6e u#de$t'i#8 0Se%tio# -@>; Sub ? +e%tio# -; %)'u+e ';

'#d +ub ? +e%tio# ; .1:

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The Consent o$ Co)pan# in Henera" )eetin/ '# %a# o$ specia" reso"!tion is re!ired to se""

"ease or other%ise dispose o$ the %ho"e or s!'stantia""# %ho"e o$ the !nderta3in/ o$ the

co)pan#. Where the co)pan# o%ns )ore than one !nderta3in/ than se"" "ease or other%ise

dispose o$ the %ho"e or s!'stantia""# the %ho"e o$ an# o$ s!ch !nderta3in/s re!ire s!ch consent.

K4nderta3in/ sha"" )ean an !nderta3in/ in %hich the in0est)ent o$ the co)pan# e2ceeds

t%ent# per cent o$ its net %orth as per the a!dited 'a"ance sheet o$ the precedin/ $inancia" #ear or

an !nderta3in/ %hich /enerates t%ent# per cent o$ the tota" inco)e o$ the co)pan# d!rin/ the

pre0io!s $inancia" #ear.

The e2pression Ks!'stantia""# the %ho"e o$ the !nderta3in/ in an# $inancia" #ear sha"" )ean

t%ent# per cent or )ore o$ the 0a"!e o$ the !nderta3in/ as per the a!dited 'a"ance sheet o$ the

precedin/ $inancia" #ear.

Nothin/ contained in this c"a!se sha"" a$$ectS

(a& The tit"e o$ a '!#er or other person %ho '!#s or ta3es on "ease an# propert# in0est)ent or

!nderta3in/ as is re$erred to in that c"a!se in /ood $aith1 or

('& The sa"e or "ease o$ an# propert# o$ the co)pan# %here the ordinar# '!siness o$ the co)pan#

consists o$ or co)prises s!ch se""in/ or "easin/.

An# specia" reso"!tion passed '# the co)pan# consentin/ to the transaction as is re$erred to in

c"a!se (a& o$ s!'-section (,& )a# stip!"ate conditions speci$ied in s!ch reso"!tion inc"!din/

conditions re/ardin/ the !se disposa" or in0est)ent o$ the sa"e proceeds %hich )a# res!"t $ro)

the transactions.,+

To 'orro% )one# (ection ,D7 !' section , c"a!se c and !' section +&:

The Consent o$ Co)pan# in Henera" )eetin/ '# %a# o$ specia" reso"!tion is re!ired to )one#

%here the )one# to 'e 'orro%ed to/ether %ith the )one# a"read# 'orro%ed '# the co)pan#

%i"" e2ceed a//re/ate o$ its paid-!p share capita" and $ree reser0es apart $ro) te)porar# "oans

o'tained $ro) the co)pan#s 'an3ers in the ordinar# co!rse o$ '!siness.

12 https://indiancaselaws.wordpress.com/category/corporatelaw/companiesact

2!13/. "ccessed on 22.!9.2!15.

17

https://indiancaselaws.wordpress.com/category/corporate-law/companies-act-2013/https://indiancaselaws.wordpress.com/category/corporate-law/companies-act-2013/https://indiancaselaws.wordpress.com/category/corporate-law/companies-act-2013/https://indiancaselaws.wordpress.com/category/corporate-law/companies-act-2013/


18/25

The e2pression Kte)porar# "oans )eans "oans repa#a'"e on de)and or %ithin si2 )onths $ro)

the date o$ the "oan s!ch as short-ter) cash credit arran/e)ents the disco!ntin/ o$ 'i""s and the

iss!e o$ other short-ter) "oans o$ a seasona" character '!t does not inc"!de "oans raised $or the

p!rpose o$ $inancia" e2pendit!re o$ a capita" nat!re.

E0er# specia" reso"!tion passed '# the co)pan# in /enera" )eetin/ sha"" speci$# the tota" a)o!nt

!p to %hich )onies )a# 'e 'orro%ed '# the 5oard o$ 6irectors.

No de't inc!rred '# the co)pan# in e2cess o$ the "i)it i)posed '# c"a!se (c& o$ s!'-section (,&

sha"" 'e 0a"id or e$$ect!a" !n"ess the "ender pro0es that he ad0anced the "oan in /ood $aith and

%itho!t 3no%"ed/e that the "i)it i)posed '# that c"a!se had 'een e2ceeded.,8

CONTRIBUTION TO BONA FIDE CHARITABLE AND OTHER FUNDS

0SECTION -@-1:

The 5oard o$ 6irectors o$ a co)pan# )a# contri'!te to 'ona $ide charita'"e and other $!nds. The

prior per)ission o$ the co)pan# in /enera" )eetin/ sha"" 'e re!ired $or s!ch contri'!tion in

case an# a)o!nt the a//re/ate o$ %hich in an# $inancia" #ear e2ceed $i0e per cent. o$ its

a0era/e net pro$its $or the three i))ediate"# precedin/ $inancia" #ears.

"OLITICAL CONTRIBUTION 0SECTION -@=1:

Po"itica" Contri'!tion is one o$ the intense de'ates $or #ears. To constit!te Po"itica" Contri'!tion

s!ch contri'!tion )!st 'e to Po"itica" Parties (other or/anisations o$ po"itica" nat!re are

e2c"!ded&. This section sa# that Kpo"itica" part# )eans a po"itica" part# re/istered !nder section

+=A o$ the Representation o$ the Peop"e Act ,=;,.

Limit o# "o)iti%') Co#t$ibutio# 0Se%tio# -@=; Sub ? +e%tio# -1

A co)pan# other than a Ho0ern)ent co)pan# and a co)pan# %hich has 'een in e2istence $or

"ess than three $inancia" #ears )a# contri'!te an# a)o!nt direct"# or indirect"# to an# po"itica"

part#. The a//re/ate o$ the a)o!nt %hich )a# 'e so contri'!ted '# the co)pan# in an# $inancia"

#ear sha"" not e2ceed se0en and a ha"$ per cent o$ its a0era/e net pro$its d!rin/ the three


++.7=.+7,;

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i))ediate"# precedin/ $inancia" #ears. No s!ch contri'!tion sha"" 'e )ade '# a co)pan# !n"ess

a reso"!tion a!thorisin/ the )a3in/ o$ s!ch contri'!tion is passed at a )eetin/ o$ the 5oard o$

6irectors and s!ch reso"!tion sha"" 'e dee)ed to 'e j!sti$ication in "a% $or the )a3in/ and the

acceptance o$ the contri'!tion a!thorised '# it.

Co#+titue#t o* "o)iti%') Co#t$ibutio# 0Se%tio# -@=; Sub ? +e%tio# =1:

In addition to direct donation indirect donations and e2penses a"so constit!te po"itica" donations.

(a& a donation or s!'scription or pa#)ent ca!sed to 'e /i0en '# a co)pan# on its 'eha"$ or on

its acco!nt to a person %ho to its 3no%"ed/e is carr#in/ on an# acti0it# %hich at the ti)e at

%hich s!ch donation or s!'scription or pa#)ent %as /i0en or )ade can reasona'"# 'e re/arded

as "i3e"# to a$$ect p!'"ic s!pport $or a po"itica" part# sha"" a"so 'e dee)ed to 'e contri'!tion o$

the a)o!nt o$ s!ch donation s!'scription or pa#)ent to s!ch person $or a po"itica" p!rpose1

('& the a)o!nt o$ e2pendit!re inc!rred direct"# or indirect"# '# a co)pan# on an ad0ertise)ent

in an# p!'"ication 'ein/ a p!'"ication in the nat!re o$ a so!0enir 'roch!re tract pa)ph"et or

the "i3e sha"" a"so 'e dee)edS

%here s!ch p!'"ication is '# or on 'eha"$ o$ a po"itica" part# to 'e a contri'!tion o$ s!ch a)o!nt

to s!ch po"itica" part# and

%here s!ch p!'"ication is not '# or on 'eha"$ o$ '!t $or the ad0anta/e o$ a po"itica" part# to 'e a

contri'!tion $or a po"itica" p!rpose.

Di+%)o+u$e o* "o)iti%') Co#t$ibutio# 0Se%tio# -@=; Sub ? +e%tio# 1:

E0er# co)pan# sha"" disc"ose in its Pro$it and Loss Acco!nt an# a)o!nt or a)o!nts contri'!ted

'# it to an# po"itica" part# d!rin/ the $inancia" #ear to %hich that acco!nt re"ates /i0in/

partic!"ars o$ the tota" a)o!nt contri'!ted and the na)e o$ the part# to %hich s!ch a)o!nt has

'een contri'!ted.,>

Co#t$'+D7CorporateQHo0ernance6irectorsQ!nderQCo)paniesQActQ+7,8


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I$ a co)pan# )a3es an# contri'!tion in contra0ention o$ the pro0isions o$ this section the

co)pan# sha"" 'e p!nisha'"e %ith $ine %hich )a# e2tend to $i0e ti)es the a)o!nt so contri'!ted

and e0er# o$$icer o$ the co)pan# %ho is in de$a!"t sha"" 'e p!nisha'"e %ith i)prison)ent $or a

ter) %hich )a# e2tend to si2 )onths and %ith $ine %hich )a# e2tend to $i0e ti)es the a)o!nt

so contri'!ted.

CONTRIBUTION TO NATIONAL DEFENCE FUND ETC, 0SECTION -@1:

The 5oard o$ 6irectors o$ an# co)pan# or an# person or a!thorit# e2ercisin/ the po%ers o$ the

5oard o$ 6irectors o$ a co)pan# or o$ the co)pan# in /enera" )eetin/ )a# contri'!te s!ch

a)o!nt as it thin3s $it to the Nationa" 6e$ence !nd or an# other !nd appro0ed '# the Centra"

Ho0ern)ent $or the p!rpose o$ nationa" de$ence. E0er# co)pan# sha"" disc"ose in its Pro$its and

Loss Acco!nt the tota" a)o!nt or a)o!nts contri'!ted '# it to the !nd d!rin/ the $inancia" #ear

to %hich the a)o!nt re"ates.

2!


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Dutie+ o* t6e Bo'$d o* Di$e%to$+

The d!ties and responsi'i"ities o$ directors stip!"ated '# the Indian Co)panies Act o$ +7,8 can

'road"# 'e c"assi$ied into the $o""o%in/ t%o cate/ories:-,;

• The d!ties and "ia'i"ities %hich enco!ra/e and pro)ote the sincerest in0est)ent o$ the

'est e$$orts o$ directors in the e$$icient and pr!dent corporate )ana/e)ent in pro0idin/

e"e/ant and s%i$t reso"!tions o$ 0ario!s '!siness-re"ated iss!es inc"!din/ those %hich are

raised thro!/h @red $"a/s@ and in ta3in/ $!""# )at!re and %ise decisions to a0ert

!nnecessar# ris3s to the co)pan#.

• id!ciar# d!ties %hich ens!re and sec!re that the directors o$ co)panies a"%a#s 3eep the

interests o$ the co)pan# and its sta3eho"ders ahead and a'o0e their o%n persona"

interests.

The $o""o%in/ d!ties and "ia'i"ities ha0e 'een i)posed on the directors o$ co)panies '# the

Indian Co)panies Act o$ +7,8 !nder its ection ,??: ---

• A director o$ a co)pan# sha"" act in accordance %ith the Artic"es o$ Association (AOA&

o$ the co)pan#.

• A director o$ the co)pan# sha"" act in /ood $aith in order to pro)ote the o'jects o$ the

co)pan# $or the 'ene$its o$ the co)pan# as a %ho"e and in the 'est interests o$ the

sta3eho"ders o$ the co)pan#.

• A director o$ a co)pan# sha"" e2ercise his d!ties %ith d!e and reasona'"e care s3i"" and

di"i/ence and sha"" e2ercise independent j!d/)ent.

• A director o$ a co)pan# sha"" not in0o"0e in a sit!ation in %hich he )a# ha0e a direct or

indirect interest that con$"icts or possi'"# )a# con$"ict %ith the interest o$ the co)pan#.


++.7=.+7,;

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• A director o$ a co)pan# sha"" not achie0e or atte)pt to achie0e an# !nd!e /ain or

ad0anta/e either to hi)se"$ or to his re"ati0es partners or associates and i$ s!ch director

is $o!nd /!i"t# o$ )a3in/ an# !nd!e /ain he sha"" 'e "ia'"e to pa# an a)o!nt e!a" to

that /ain to the co)pan#.

• A director o$ a co)pan# sha"" not assi/n his o$$ice and an# assi/n)ent so )ade sha"" 'e

0oid.

• I$ a director o$ the co)pan# contra0enes the pro0isions o$ this section s!ch director sha""

'e p!nisha'"e %ith $ine %hich sha"" not 'e "ess than one La3h R!pees '!t %hich )a#

e2tend to $i0e Lac R!pees.

I#de&e#de#t Di$e%to$+

The "ia'i"it# re/i)e o$ the CA-+7,8 not on"# i)poses the a'o0e-)entioned d!ties and

responsi'i"ities on the directors o$ Indian co)panies '!t a"so ad0ocates $or independence and

e!ita'"eness o$ the 'oard o$ a co)pan# especia""# a p!'"ic "i)ited co)pan#. Conse!ent"# the

ro"es d!ties and responsi'i"ities o$ the Independent 6irectors ha0e a"so 'een stip!"ated '# the

ne% Indian Co)panies Act o$ +7,8. An Independent 6irector is that )e)'er o$ the 'oard o$ a

co)pan# %ho does not possess an# $inancia" re"ationship %ith the co)pan# (e2cept the sittin/

$ees& nor can o%n shares in the co)pan#. The ear"ier Indian Co)panies Act o$ ,=;? had no

e2p"icit pro0isions $or the independent directors and on"# the O"d C"a!se >= o$ the Listin/

A/ree)ent o$ E5I contained prescriptions $or ind!ction o$ independent directors to the "isted

co)panies.,?

The ne% Indian Co)panies Act o$ +7,8 dictates that e0er# "isted co)pan# )!st contain at "east

one-third o$ the tota" )a/nit!de o$ its directors as the independent directors1 and it a"so

e)po%ers the Ho0ern)ent o$ India to inc"!de other cate/ories o$ co)panies %ithin the scope o$

this pro0ision or re!ire)ent (ection ,>= o$ the CA-+7,8&. P!'"ic "i)ited co)panies

co)posited as per the $or)er CA-,=;? are /ranted a transition period o$ one #ear $or )a3in/

16

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strict co)p"iance %ith this )andator# pro0ision. A/ain the independent directors are not

per)itted to ho"d o$$ice $or )ore than t%o consec!ti0e ter)s o$ $i0e-#ear periods.

In the ne% re/i)e the ro"es and d!ties o$ the independent directors attained si/ni$icant

e2pansion and )an# ne% other areas ha0e 'een pr!dent"# co0ered. 5road"# the# are

inte""i/ent"# assi/ned the hi/h"# responsi'"e ro"e o$ the ar'iters a)on/ 0ario!s constit!encies

%ithin the corporation. Bence the ne% pro0isions $or the independent directors o$ the "i)ited

co)panies are certain"# 0er# constr!cti0e $or transparent and so!nd corporate /o0ernance and

are h!/e"# 'ene$icia" to the co)pan# and its a"" shareho"ders. o)e o$ the )ost si/ni$icant

$!nctions d!ties and "ia'i"ities o$ the independent directors are the $o""o%in/ (as per the

ched!"e I o$ the CA-+7,8&: ---

• To assist in $or%ardin/ e!ita'"e and independent j!d/)ent to the 'oard

• To sec!re and pro)ote the interests o$ a"" sta3eho"ders o$ the concerned co)pan#

partic!"ar"# o$ the )inorit# shareho"ders

• To conci"iate and 'a"ance the con$"ictin/ interests o$ the sta3eho"ders

• To attend acti0e"# and constr!cti0e"# )ost o$ the 'oard and co))ittee )eetin/s

• To pa# proper and ade!ate attention to Re"ated Part# Transactions (RPTs&

• To report concerns honest"# and i)partia""# a'o!t an# !nethica" 'eha0ior 0io"ation o$ the

code o$ cond!ct or an# s!spected $ra!d in the co)pan#

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Co#%)u+io#

The Co)panies Act +7,8 (@A%t@& is enacted to /rad!a""# rep"ace the o"d Act o$ ,=;? %ith the

o'jecti0e to 'rin/ )ore acco!nta'i"it# and /ood corporate /o0ernance. The Ministr# o$

Corporate A$$airs has noti$ied ninet#-ei/ht sections o$ the Act %hich ha0e co)e into e$$ect $ro)epte)'er ,+ +7,8 and repea"ed the correspondin/ sections o$ the ,=;? Act. The Act appears to

p"ace a hi/her de/ree o$ responsi'i"it# on the 5oard )e)'ers $or /ood corporate co)p"iance. A

c"ear !nderstandin/ o$ these o'"i/ations and responsi'i"ities %i"" 'e critica" $or c!rrent and

prospecti0e 5oard )e)'ers. In the Act the sections re"ated to ro"e d!ties and re)o0a" o$

directors are #et to 'e i)p"e)ented '!t it %i"" happen soon and there$ore )erits attention. In the

conte2t o$ the 5oard o$ a co)pan# the "e/is"ators ha0e $oc!sed on the ro"e o$ independent

directors and ha0e codi$ied the d!ties o$ directors %hich %ere )issin/ in the o"d Act.

Whi"e "oo3in/ at a"" the detai"s the Act does not appear to ha0e introd!ced too )an# si/ni$icant

chan/es in the pro0isions %ith respect to directors. The pena"ties $or contra0ention !nder

di$$erent sections ha0e 'een increased $ro) a )ini)!) o$ INR ,7777 (appro" #$%$& to a

)ini)!) o$ INR ;7777 (appro" #&( & to 'rin/ in )ore acco!nta'i"it#. With the introd!ction o$

strict e"i/i'i"it# criteria $or appoint)ent o$ independent directors their pec!niar# interest is

'#passed and this is to create a %atchdo/ $or p!'"ic"isted co)panies. Pena"t# $or an#

contra0ention '# an independent director is a"so introd!ced '!t the# %i"" 'e "ia'"e on"# $or those

$ra!d!"ent transactions $or %hich the# %i"" /i0e their consent or %here it can 'e de)onstrated

that the# ha0e not acted di"i/ent"#. This de$ense hard"# pro0ides an# i))!nit# as )ost Indian

"a%s char/e the directors $or an# o$$ence. The Act a"so per)its an Indian co)pan# to inde)ni$#

its directors and o$$icers !n"i3e the ,=;? Act. Wo)en too are enco!ra/ed to join the 'oard roo)

th!s 'rin/in/ in di0erse 0ie%points and ta"ent. In essence the Act has endo%ed responsi'i"it#

and introd!ced hi/h standards $or directors so that the# are acco!nta'"e to the shareho"ders $or

their action and persona""# "ia'"e $or an# da)a/e ca!sed '# the). 5!t the e$$ecti0eness o$ these

pro0isions %i"" depend on ho% strict"# the# are en$orced.

24


25/25

BIBLIOGRA"HY

I, "RIARY SOURCE

# Co)panies Act ,=;?

# Co)panies Act +7,8

II, SECONDARY SOURCE

Boo+ Re*e$$ed:

• A Ra)ai#a KH!ide to Co)panies Act (+7,>& Le2isNe2is 5!tter%orths P!'"ications ,Dth

Edn.

• C.R.6atta KThe Co)pan# La% (+77D& Le2isNe2is 5!tter%orths P!'"ications ?th Edn.

• Pa")ers Co)pan# La% (,=D*& te0ens G ons Ltd. P!'"ications o" , +>th Edn.

A$ti%)e+ Re*e$$ed:

• Anderson Ra#)ond1 a%#er B!/h. @The Board of Directors as an Agent of Change in

Turnarounds@. Transaction Ad0isors. IN +8+=-=,8>

• Ro'ert III Benr# M.1 Wi""ia) J. E0ans1 6anie" B. Bone)ann1 Tho)as J. 5a"ch (, Octo'er

+777&. Robert's Rules of Order Newly Revised . Ca)'rid/e MA: 6a Capo Press.I5N 7-*8D+-787*-?

Web+ite+ ;partIchapterIII (49 Ho0t&

• http:%%%.o$t./o0.!3sharedUo$treportsco)pUpo"ic#o$t=,?.pd$ (O$$ice o$ air

Tradin/&

• http:%%%.jstor.or/sta'"e,8+*8?*

• http:indiancase"a%s.%ordpress.co)cate/or#corporate-"a%co)panies-act-+7,8• http:aish)/hrana.)e+7,87;8,po%er-o$-'oard-!nder-co)panies-act-+7,8

• http:%%%.)onda.co)india

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https://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://en.wikipedia.org/wiki/International_Standard_Serial_Numberhttps://www.worldcat.org/issn/2329-9134https://en.wikipedia.org/wiki/International_Standard_Book_Numberhttps://en.wikipedia.org/wiki/Special:BookSources/0-7382-0307-6https://en.wikipedia.org/wiki/Special:BookSources/0-7382-0307-6http://indiancaselaws.wordpress.com/category/corporate-law/companies-act-2013/http://aishmghrana.me/2013/05/31/power-of-board-under-companies-act-2013/https://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://www.transactionadvisors.com/insights/board-directors-agent-change-turnaroundshttps://en.wikipedia.org/wiki/International_Standard_Serial_Numberhttps://www.worldcat.org/issn/2329-9134https://en.wikipedia.org/wiki/International_Standard_Book_Numberhttps://en.wikipedia.org/wiki/Special:BookSources/0-7382-0307-6https://en.wikipedia.org/wiki/Special:BookSources/0-7382-0307-6http://indiancaselaws.wordpress.com/category/corporate-law/companies-act-2013/http://aishmghrana.me/2013/05/31/power-of-board-under-companies-act-2013/

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