Come January 1, 2006, Corporate Governance is all set to become more effective and efficient, thanks to the Clause 49 introduced by SEBI in the new Corporate Governance guidelines.
The issue of corporate guidelines acquired centre-stage as a result of the huge foreign investments coming into India.
These foreign investors wish to be assured, that the companies they invest their money will not only be managed well, but expect the law of the land to be open and transparent in their functioning.
To further enhance their confidence and to safeguard the retail investors, SEBI has revised Clause 49 of its "Listing Agreement, "which stipulates that at least one-third of the directors on the boards of the companies should be independent professionals.
See full Article.
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