April 30, 2020 Summary of the notification issued by MCA on 29/04/2020 Extension of deadline for Independent Directors to get themselves registered with the Data Bank from April 30, 2020 to June 2020. Through this notification, MCA has extended the deadline for those individuals who were acting in the capacity of Independent Directors [...]
Triggered by the lockdown imposed on our society due to the Covid-19 pandemic, onsite activities like even the secretarial audit, with a higher sanctity, have moved online. Secretarial Auditors, given their statutory position, need to examine and verify original secretarial records. Given the shift from onsite audit to online audit, what meets the criteria of [...]
(This article is the second of a trilogy that traces the origin of the three elements of financial statements, the balance sheet, the profit and loss account and the cash flow statement) Financial Statements consisting of the three- Balance Sheet, Profit and Loss Account and the Cash Flow Statements, form the core segment of [...]
Financial Statements consisting of the three- Balance Sheet, Profit and Loss Account and the Cash Flow Statements, form the core segment of corporate communication to their shareholders and investors. The three can be likened to a still photograph, a video film and a slow motion replay of the video film. Like a still photograph, [...]
In the twenty first century prohibition of insider trading is an accepted fact in corporate law, although it is enforced with varying effectiveness in different stock markets. However, this was not always the case. At the beginning of twentieth century, and in the first three decades that followed, insider trading was not only rampant [...]
Statutory audit, an integral part of the corporate governance structure today is of relatively recent origin, mandated only in 1900 CE. Prior to this, audit of a company’s accounts was discretionary, triggered by the need of promoters to enhance their credibility required while raise money or reassuring investors about financial mismanagement concerns or when [...]
In 1869 CE, the Mining Companies Limited Liability Act was passed by the Victorian government in Australia. This act enabled companies to forfeit the shares of shareholders who failed to pay the calls made on their shares. This was a critical concept introduced to protect the interest of shareholders who paid the calls made [...]
I. Facts of the Case: Mr. Thomas Sutton, one of the richest citizens of England, a coal miner and money lender by profession set up a corporation in London chartered by English King for the establishment of a hospital and a free grammar school for charity among others such initiatives. Unfortunately, he died before the [...]
The concept of Independent Directors (IDs) on Corporate Boards is a novel concept that evolved in the mutual funds industry in 1940s and entered the corporate world only in 1990s. Considered lesser of the two evils, IDs were taken on the Corporate Board to strengthen corporate governance. Despite being the holy cow of corporate [...]
Context: Voting as a desired decision making method in groups is unquestioned today. The right of all participants to have a say in the decision is based on the belief collective wisdom is superior to individual intelligence. However there are variations in voting system that can significantly alter this basic premise of superior collective [...]
