Scribd Logo
Upload

Welcome to Scribd!

  • Kumar Managalam Birla Committee, 1999

    Uploaded by

    Indu Kapoor
    97 views6 pages
    The Kumar Mangalam Birla Committee was formed in 1999 by SEBI to improve corporate governance standards in listed companies. The committee, chaired by Kumar Mangalam Birla, made 25 recommendations, of which 19 were mandatory. The primary objectives of forming the committee were to view corporate governance from the perspective of investors and shareholders, promote high standards of governance, and improve disclosure of financial and non-financial information.

    Original Description:

    Original Title

    Kumar Managalam Birla Committee ,1999

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Kumar Mangalam Birla Committee was formed in 1999 by SEBI to improve corporate governance standards in listed companies. The committee, chaired by Kumar Mangalam Birla, made 25 recommendations, of which 19 were mandatory. The primary objectives of forming the committee were to view corporate governance from the perspective of investors and shareholders, promote high standards of governance, and improve disclosure of financial and non-financial information.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    97 views6 pages

    Kumar Managalam Birla Committee, 1999

    Uploaded by

    Indu Kapoor
    The Kumar Mangalam Birla Committee was formed in 1999 by SEBI to improve corporate governance standards in listed companies. The committee, chaired by Kumar Mangalam Birla, made 25 recommendations, of which 19 were mandatory. The primary objectives of forming the committee were to view corporate governance from the perspective of investors and shareholders, promote high standards of governance, and improve disclosure of financial and non-financial information.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    KUMAR MANAGALAM BIRLA COMMITTEE ,1999

    KUMAR MANGALAM BIRLA COMMITTEE,1999


    Second major initiative taken by SEBI on 7th May1999. Appointment of committee under chairmanship of Mr. Kumar Mangalam Birla. The Committee made 25 recommendations, 19 of them were `mandatory.

    WHY WAS THE COMMITTEE FORMED?


    Primary objective was to view corporate governance from perspective of investors & shareholders. To promote and raise the standards of corporate governance. To improve corporate governance standards in listed companies in areas such as Disclosure of material information (financial & non-financial) Responsibilities of independent & non-independent directors To draft a code of corporate best practice To suggest safeguards to be instituted within companies to deal with insider trading and insider information

    Mandatory recommendations
    Applies to listed companies of paid up capital of Rs. 3 crores Composition of Board of Directors - optimum combination of Executive & Non- Executive directors (at least 50%). Audit Committee- With 3 independent directors, with 1 having financial and accounting knowledge. Remuneration committee Disclosure in annual report relating to all elements of remuneration package of directors like salary, bonus, ESOPs, pension, benefits.

    Participation of Director- shall not be a member of more than 10 committees & shall not act as chairman of more than 5 committees across all the companies. Disclosure- Management discussion & analysis report covering industry structure, opportunities, threats, internal control system. Information sharing with shareholders.
    Board procedures- At least 4 meetings in a year, to review operational plans, capital budgets & quarterly results.

    NON - MANDATORY RECOMMENDATIONS


    Role Of Chairman - effective participation of all members Remuneration Committee Of Board credibility & transparency Ballot system -Shareholders' Right For Receiving Half Yearly Financial Performance Postal Ballot Covering Critical Matters Like Alteration In Memorandum Etc Sale -Of Whole Or Substantial Part Of The Undertaking Corporate Restructuring Further Issue Of Capital Venturing Into New Businesses

    You might also like