– Because they are transparent on all transactions, the audit committee meets at least four times in one year, with the maximum time between meetings not greater than 120 days. The quorum consists of either two or two or even two members of the Committee, who must be higher, but at least two independent directors must be present. i. When a director is appointed or reconquered, his resume, the places where he or she is a director, or committees and participation in NEDS should be made available. Disclosure of the relationship with other directors. The term “clause 49” refers to clause 49 of the listing agreement between a company and the exchanges on which it is listed (the listing agreement is the same for all Indian exchanges, including the NSE and the BSE). This clause is a recent addition to the Listing Agreement and was not inserted until 2000 following the recommendations of the Kumarmangalam Birla Committee on Corporate Governance, established in 1999 by the Securities Exchange Board of India (SEBI). iv. If the policy for identifying material subdivided and this policy should be formulated on the website of the AR-linked company. Sebi has entered paragraph 49 of the Equity Listing Agreement (2000), which now serves as the standard for corporate governance in India, as an important measure for codifying corporate governance standards. Section 49 gave rise to the requirement that half of the directors of the board of directors of a publicly traded company be independent directors. In the same clause, SEBI had proposed the powers of the audit committee, which had to have a majority of independent directors.
The company should be certified by accountants or business secretaries practising on compliance with corporate governance, and this certificate should also be attached to the Directors` report. The non-compulsory requirements listed in Schedule VIII of Term 49 can be implemented by the company. A company includes different stakeholders, shareholders, customers, employees, supplier partners, government and society. Their objective should not be limited to maximizing shareholder value, but should be accountable to all parties involved. Their governance should be fair and transparent to their stakeholders in all transactions. That is why, in today`s globalized world, where companies must have access to global capital pools, corporate governance will need to attract and retain the best human capital from different parts of the world, work with suppliers of great cooperation and live in harmony with the community. iii. The stakeholder relations committee should be set up with the president as NED. The share transfer process is expected to proceed smoothly. To comply with clause 49, paragraph 1, a company must adhere to certain principles.  In the previous two years, the independent director should not maintain a “material” financial relationship with the company, including the holding company, subsidiary, associated company, promoter or director, except for receipt of the management fee. In the past, an independent director was prohibited from having a financial relationship in normal affairs and on the length of his arms, even if it was not material.