Company directors may have to start clearing exams on laws

Last Updated at: October 23, 2019
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Company directors may have to start clearing exams on laws

According to a report on Bloomberg, all persons looking to join a company’s Board of Directors have to clear an online exam on company laws, ethics and capital market. While there would be no limitation for the number of attempts, there will be a fixed time frame for the aspirants to clear the exam.

The report stated that the government has taken the step in an attempt to curb the fraudulence in the national corporate governance system, after witnessing a string of frauds. The government is set to impose a five-year ban on Deloitte Haskins & Sells for failure to flag the potential risks from the activities carried out by NBFC IL&FS.

The agency spoke to industry observers, who stated that the authorities should have been warned of the risks earlier. Injeti Srinivas, a top bureaucrat in charge of corporate affairs said, “We want to demolish the myth that independent directors don’t have any fiduciary duty. We want to propagate corporate literacy to make them aware of their duties, roles and responsibilities.”

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Experienced directors who are already serving the board would be exempted. They will have to get themselves registered on the government database, that is being prepared. According to the existing laws, companies listed in India has to have independent directors accounting for at least a third of its board strength.

HOW LONG CAN I WAIT TO REGISTER IN GST?

A person can wait as long as 30 days to complete the process for GST registration, provided he/she is liable to obtain the same.Understand the procedure for GST registration and GST returns here.

What benefits are given to MSME by state and central government?

The MSMEs will get benefits and subsidies from the government, both central and state. These include sales tax exemption provided some conditions are met.More on Income Tax Return Filing.

What is the purpose of Tax Back Offer?

Do not trust any agents who offer false assurance of filing the ITR for free. These agents sell your sensitive financial data to other companies.Learn more about ISO Certification.

What documents are required for ISO 9001 2015?

Standards for selection and evaluation of suppliers, quality objectives, quality policy and scope of the QMS are the documents required to be ISO compliant. More info on NGO Registration in india.

Whether an NGO can give loans to another NGO under the provisions of the Income-tax Act, 1961 ?

The Income Tax Act of 1961 offers the provision to transfer loans from an NGO to another similar one for furthering its objects.More about Udyog Aadhar Registration.

Company directors may have to start clearing exams on laws

599

According to a report on Bloomberg, all persons looking to join a company’s Board of Directors have to clear an online exam on company laws, ethics and capital market. While there would be no limitation for the number of attempts, there will be a fixed time frame for the aspirants to clear the exam.

The report stated that the government has taken the step in an attempt to curb the fraudulence in the national corporate governance system, after witnessing a string of frauds. The government is set to impose a five-year ban on Deloitte Haskins & Sells for failure to flag the potential risks from the activities carried out by NBFC IL&FS.

The agency spoke to industry observers, who stated that the authorities should have been warned of the risks earlier. Injeti Srinivas, a top bureaucrat in charge of corporate affairs said, “We want to demolish the myth that independent directors don’t have any fiduciary duty. We want to propagate corporate literacy to make them aware of their duties, roles and responsibilities.”

Start Your Own Business

Experienced directors who are already serving the board would be exempted. They will have to get themselves registered on the government database, that is being prepared. According to the existing laws, companies listed in India has to have independent directors accounting for at least a third of its board strength.

HOW LONG CAN I WAIT TO REGISTER IN GST?

A person can wait as long as 30 days to complete the process for GST registration, provided he/she is liable to obtain the same.Understand the procedure for GST registration and GST returns here.

What benefits are given to MSME by state and central government?

The MSMEs will get benefits and subsidies from the government, both central and state. These include sales tax exemption provided some conditions are met.More on Income Tax Return Filing.

What is the purpose of Tax Back Offer?

Do not trust any agents who offer false assurance of filing the ITR for free. These agents sell your sensitive financial data to other companies.Learn more about ISO Certification.

What documents are required for ISO 9001 2015?

Standards for selection and evaluation of suppliers, quality objectives, quality policy and scope of the QMS are the documents required to be ISO compliant. More info on NGO Registration in india.

Whether an NGO can give loans to another NGO under the provisions of the Income-tax Act, 1961 ?

The Income Tax Act of 1961 offers the provision to transfer loans from an NGO to another similar one for furthering its objects.More about Udyog Aadhar Registration.

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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.