CEO, CFOs and Company Secretary are now will face the default onus in any case pertaining to offence committed by a company. The new Companies Bill, 2008 has made these executives responsible for acts of company. Earlier, there was no clear cut definition of “officer in default” and it resulted in numerous court room debates over who should be held accountable. The bill also asks for such information to be provided in annual reports of the company.
The new changes have been made with view to bring more accountability to corporate governance. The demand for greater transparency and accountability in corporate world has been the major driving force for this change. The Companies Bill, 2008 carries another major amendment for removing the provision for a managing director of an Indian company to be resident in India.
The new changes have been made with view to bring more accountability to corporate governance. The demand for greater transparency and accountability in corporate world has been the major driving force for this change. The Companies Bill, 2008 carries another major amendment for removing the provision for a managing director of an Indian company to be resident in India.
Posts
No comments:
Post a Comment