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CORPORATE GOVERNANCE –
AMENDMENTS
CLAUSES 35B & 49CLAUSES 35B & 49
OF THE LISTING AGREEMENT
CLAUSE 35B
Applicable to all listed companies.
G d b C i (M d Ad i i i )Governed by Companies (Management and Administrati...
CLAUSE 35BCLAUSE 35B EE‐‐voting under Companies voting under Companies 
(Management and Administration) Rules(Management a...
CLAUSE 49: Corporate
GGovernance
A li bl t ll li t d i f O t b 1stApplicable to all listed companies w.e.f. October 1st,
2...
Corporate Governance- Stakeholder
Role & ShareholderRole & Shareholder
Effective redress for the violation of their
rights...
CorporateCorporate
GovernanceGovernance
Disclosure of material interest , if any (directly or indirectly);
KEY FUNCTIONS O...
Corporate GovernanceCorporate Governance --
BOARD MEETINGSBOARD MEETINGS
At least FOUR times a year
with a maximum time ga...
COMPULSORY WHISTLE BLOWERCOMPULSORY WHISTLE BLOWER
company shall affirm that it has not
MECHANISMMECHANISM
company shall a...
Corporate GovernanceCorporate Governance --
INDEPENDENT DIRECTORINDEPENDENT DIRECTORINDEPENDENT DIRECTORINDEPENDENT DIRECT...
Term & Appointment ofTerm & Appointment of
I d d t Di tI d d t Di tIndependent DirectorIndependent Director
As per Compani...
AUDIT COMMITTEEAUDIT COMMITTEE
Constitution of a Qualified and Independent Audit Committee.
MINIMUM NUMBER : THREE DIRECTO...
ROLE OF AUDIT COMMITTEEROLE OF AUDIT COMMITTEE
Review company’s financial reporting process and the disclosure of its
fina...
Nomination & RemunerationNomination & Remuneration
CommitteeCommitteeCommitteeCommittee
Minimum strength : at g
least thre...
Holding & Subsidiary CompanyHolding & Subsidiary Company
Minutes of the Board meetings of the unlisted subsidiary company ...
MATERIAL RELATED PARTY MATERIAL RELATED PARTY 
TRANSACTIONTRANSACTIONTRANSACTION TRANSACTION 
If the transaction / transac...
Determining related partiesDetermining related partiesg pg p
Parents
Control
Parents
Subsidiaries
Fellow subsidiaries
Join...
RELATED PARTY TRANSACTIONRELATED PARTY TRANSACTION
APPROVAL & DISCLOSURESAPPROVAL & DISCLOSURES
Details of all material
Pr...
DISCLOSURESDISCLOSURES
Any Deviation / Different treatment from the prescribed Accounting Standardy / p g
while preparing ...
CEO/CFO CertificationsCEO/CFO CertificationsCEO/CFO CertificationsCEO/CFO Certifications
CERTIFICATION BY CEO/CFO TO THE B...
REPORT ON CORPORATEREPORT ON CORPORATE
GOVERNANCEGOVERNANCEGOVERNANCEGOVERNANCE
The companies shall submit a quarterlyp q ...
COMPLIANCE CERTIFICATECOMPLIANCE CERTIFICATE
ON CORPORATE GOVERNANCEON CORPORATE GOVERNANCEON CORPORATE GOVERNANCEON CORPO...
Th k F F hThank you. For Further
Details Contact :
01143558440 997150410501143558440,9971504105
proglobalcorp@gmail.com
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Listed entities amendments clauses 35 b , 49 of the equity listing agreement

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Listed entities amendments clauses 35 b , 49 of the equity listing agreement

  1. 1. CORPORATE GOVERNANCE – AMENDMENTS CLAUSES 35B & 49CLAUSES 35B & 49 OF THE LISTING AGREEMENT
  2. 2. CLAUSE 35B Applicable to all listed companies. G d b C i (M d Ad i i i )Governed by Companies (Management and Administration)  Rules, 2014 Th i h t id ee voting facilityvoting facility t itThe issuer company has to provide ee‐‐voting facilityvoting facility to its  shareholders for all Shareholders Resolution to be passed at  General meeting or through Postal Ballot. Such e‐voting facility shall be kept open for such period  specified under the rules. For those shareholders who do not have access to e‐voting  facility, the issuer should enable them to cast their vote in  writing on Postal Ballot as per the Rules specifiedwriting on Postal Ballot as per the Rules specified.
  3. 3. CLAUSE 35BCLAUSE 35B EE‐‐voting under Companies voting under Companies  (Management and Administration) Rules(Management and Administration) Rules(Management and Administration) Rules(Management and Administration) Rules A member may exercise his right to vote at any general meeting by electronic means. A company which opts to provide the facility to its members to exerciseA company which opts to provide the facility to its members to exercise their votes at any general meeting by electronic voting system shall follow the following procedure :- the notices of the meeting shall be sent to all the members, auditors of the company, or directors either by POST / Registered e-mail i.d. / Courier. notice shall also be placed on the website of the company. notice shall clearly indicate the process and manner for voting by electronic means. the e-voting shall remain open for not less than one day and not moreg p y than three days. during the e-voting period, shareholders of the company, holding shares either in physical form or in dematerialized form, as on the record date,p y , , may cast their vote electronically. Results declared along with the scrutinizer’s report shall be placed on the website of the company within two days of passing of the resolution.
  4. 4. CLAUSE 49: Corporate GGovernance A li bl t ll li t d i f O t b 1stApplicable to all listed companies w.e.f. October 1st, 2014. The New Clause 49 is divided into 11 major Sub clausesThe New Clause 49 is divided into 11 major Sub clauses containing the provisions of compliances under Corporate Governance Norms. Enhanced disclos res are req ired to be made in theEnhanced disclosures are required to be made in the Annual Report. Separate Report on Corporate Governance to be part ofp p p p Annual Report . Certificate is to be obtained by the company from the Auditor or Practicing Company SecretaryAuditor or Practicing Company Secretary.
  5. 5. Corporate Governance- Stakeholder Role & ShareholderRole & Shareholder Effective redress for the violation of their rights. Encouraged mechanism for employee participation. Participation of Stakeholders in the Corporate Governance Process Increased participation in the decision makingmaking. Protection to minority shareholders from the abusive actions of controlling shareholders directly or indirectly.y y All investors can obtain information about the rights attached to all series & classes of shares before they purchase.
  6. 6. CorporateCorporate GovernanceGovernance Disclosure of material interest , if any (directly or indirectly); KEY FUNCTIONS OF BOARD :‐ Reviewing and guiding corporate strategy  major plansReviewing and guiding corporate strategy, major plans. Monitoring the effectiveness of the company’s governance practices. Ensuring a transparent board nomination process. Overseeing the process of disclosure and communications. Monitoring and reviewing Board Evaluation framework. COMPOSITION OF BOARDCOMPOSITION OF BOARD At least one Women Director . At least fifty percent of the Board should be comprised of Non‐ Executive  DirectorsDirectors. If the chairman of the Board is Executive Director or Promoter, then at least  half of the Board should be comprised of Independent Directors.
  7. 7. Corporate GovernanceCorporate Governance -- BOARD MEETINGSBOARD MEETINGS At least FOUR times a year with a maximum time gap of one hundred and twenty days between any two meetings. Director – maximum membership in TENmembership in TEN committees. Director – maximum h hChairmanship in maximum FIVE COMMITTEES.
  8. 8. COMPULSORY WHISTLE BLOWERCOMPULSORY WHISTLE BLOWER company shall affirm that it has not MECHANISMMECHANISM company shall affirm that it has not denied any personal access to audit committee and has provided protection to whistle blowers fromprotection to whistle blowers from unfair termination etc. the policy to be communicated top y employees and included in the HR manual. company to have an internal policycompany to have an internal policy on access to audit committee by employees on unethical and i tiSmall Whistle improper practice.Small Whistle Blower
  9. 9. Corporate GovernanceCorporate Governance -- INDEPENDENT DIRECTORINDEPENDENT DIRECTORINDEPENDENT DIRECTORINDEPENDENT DIRECTORNominee Director is excluded from  definition of Independent Director. h h f h d No. of  who, in the opinion of the Board, is a  person of integrity and possesses relevant  expertise and experience DIRECTORSHIPS: The SEBI recommendation  who is or was not a promoter of the  company or its holding, subsidiary or  associate company. The SEBI recommendation  are more stringent, where  the maximum  number of  Boards an independent  director can serve on who is not related to promoters or  directors in the company, its holding,  subsidiary or associate company. director can serve on  listed companies be  restricted to 7. Maximum number of  apart from receiving director's  remuneration, has or had no pecuniary  relationship with the company, its holding,  b d h Maximum number of  directorship serving as  Whole Time Director is  maximum 3. subsidiary or associate company, or their  promoters, or directors. Who is not less than 21 years of age.
  10. 10. Term & Appointment ofTerm & Appointment of I d d t Di tI d d t Di tIndependent DirectorIndependent Director As per Companies Act, 2013, an independent director canp p , , p hold up to two 5 year terms after which there needs to be a 3 year cooling off period. Formal Letter of appointment should be issued to the f d dappointment of Independent Director as per Companies Act, 2013. Intimate the Concerned Stock Exchange within ONE working d f h d f h iday from the date of such appointment. Evaluation Criteria as per Nomination Committee. Disclosure of Criteria in the Annual Report. Evaluation to be done by the Board excluding the director being evaluated. Further term of employment to be decided on the basis of f lperformance evaluation report.
  11. 11. AUDIT COMMITTEEAUDIT COMMITTEE Constitution of a Qualified and Independent Audit Committee. MINIMUM NUMBER : THREE DIRECTORS as members and Two – Third of the members should be independent. All Members of Audit Committee shall be financially literate and at least one members shall have accounting or related financial management expertise. CHAIRMAN OF AUDIT COMMITTEE should be INDEPENDENT DIRECTOR. CHAIRMAN should be present at the A.G.M. to answer shareholder queries. Company Secretary shall act as the Secretary to the committee. MEETING OF AUDIT COMMITTEE : At least FOUR times in a year Maximum gap between two meeting : Four months QUORUM : TWO members OR one third of the members of the audit committee ( whichever is greater) Minimum TWO INDEPENDENT DIRECTOR must be present.
  12. 12. ROLE OF AUDIT COMMITTEEROLE OF AUDIT COMMITTEE Review company’s financial reporting process and the disclosure of its financial information. Recommendation for appointment, remuneration and terms of appointment of auditors of the companyof auditors of the company. Approval of payment to statutory auditors for any other services rendered by the statutory auditors. Review the application or end use of the proceeds from Public issue. Review the quarterly financial statements before submission to the board for approval. Review & monitor the independence & performance of the auditor. Approval of the Related Party Transactions and its conditions. Review the WHISTLE BLOWER MECHANISMReview the WHISTLE BLOWER MECHANISM. Approval of the appointment of CFO. Look in to the reasons behind the defaults in the payment to the d it d b t h ld h h ld (if )depositors, debenture holders, shareholders (if any). Review he adequacy of the Internal Audit function.
  13. 13. Nomination & RemunerationNomination & Remuneration CommitteeCommitteeCommitteeCommittee Minimum strength : at g least three directors. All the members should be All the members should be  of non – executive  categorycatego y At least half of them  should be independentshould be independent. Chairman of the  committee should becommittee should be  independent director.
  14. 14. Holding & Subsidiary CompanyHolding & Subsidiary Company Minutes of the Board meetings of the unlisted subsidiary company shall be placed at the Board meeting of the listed holding company for review. The company shall formulate a policy for determining ‘material’p y p y g subsidiaries and such policy shall be disclosed to Stock Exchanges and in the Annual Report. At least one independent director on the Board of Directors of the holding company shall be a director on the Board of Directors of a material non listedcompany shall be a director on the Board of Directors of a material non-listed Indian subsidiary company. Audit Committee of the listed holding company shall also review the financial statements, in particular, the investments made by the unlistedfinancial statements, in particular, the investments made by the unlisted subsidiary company. Prior SPECIAL RESOLUTION is to be passed in following cases:-p g •Disposal of shares of material subsidiary which would reduce its consolidated shareholding to less than 50% or cease its controlling rights over the subsidiary company. •Selling / Disposing / Leasing of assets amounting to more than 20% of the assets of the material subsidiary.
  15. 15. MATERIAL RELATED PARTY MATERIAL RELATED PARTY  TRANSACTIONTRANSACTIONTRANSACTION TRANSACTION  If the transaction / transactions  b d i i di id llto be entered into individually or  taken together with previous  transactions during a financial  RELATED PARTYRELATED PARTY TRANSACTIONTRANSACTION g year, exceeds five percent of the  annual turnover oror twenty  percent of the net worth of the MEANING : Transfer of resources,  services or obligations  percent of the net worth of the  company as per the last audited  financial statements of the  hi h i hi h services or obligations  between a company  and a related party,  regardless of whether a  company, whichever is higher.  g price is charged.
  16. 16. Determining related partiesDetermining related partiesg pg p Parents Control Parents Subsidiaries Fellow subsidiaries Joint ventures Determining Related Parties Other entities controlled by owners or key management Parties Significant influenceSignificant influence Key management personnelKey management personnel
  17. 17. RELATED PARTY TRANSACTIONRELATED PARTY TRANSACTION APPROVAL & DISCLOSURESAPPROVAL & DISCLOSURES Details of all material Prior approval of audit committee. Details of all material transactions with related parties shall be disclosed t l l ith th Approval of shareholders through i l l i quarterly along with the compliance report on corporate governance. special resolution. The company shall disclose the policy ondisclose the policy on dealing with Related Party Transactions on its b it d l i thwebsite and also in the Annual Report.
  18. 18. DISCLOSURESDISCLOSURES Any Deviation / Different treatment from the prescribed Accounting Standardy / p g while preparing the Financial Statements. Reasons for such Deviation Does such treatment represents a True & Fair View of the transaction or item ofDoes such treatment represents a True & Fair View of the transaction or item of Balance ‐ Sheet. Details of all the elements of the remuneration packages of Directors including b t k ti f li k d i ti tbonuses, stock options, performance linked incentives, etc. All pecuniary relationship or transactions of the non‐executive directors vis‐à‐ vis the company shall be disclosed in the Annual Report. Management Discussion and Analysis report should form part of the Annual Report to the shareholders Disclosure to the Shareholders about the particulars of the Director beingp g appointment, his shareholding, qualification, no. of directorships etc. Quarterly Results and presentations made by the company on the company’s website. The details of training imparted to Independent Directors shall be disclosed in the Annual Report.
  19. 19. CEO/CFO CertificationsCEO/CFO CertificationsCEO/CFO CertificationsCEO/CFO Certifications CERTIFICATION BY CEO/CFO TO THE BOARD That they have reviewed the financial statements and cash low statement for the year and: These do not contain any materially untrue statement or omit any material fact There were no fraudulent, illegal transactions violative of the co’s Code of ConductConduct They accept responsibility for establishing and maintaining internal controls and haveand maintaining internal controls and have evaluated their effectiveness.
  20. 20. REPORT ON CORPORATEREPORT ON CORPORATE GOVERNANCEGOVERNANCEGOVERNANCEGOVERNANCE The companies shall submit a quarterlyp q y compliance report to the stock exchanges within 15 days from the close of quarter The report shall be signed either by the Compliance Officer or the Chief Executive Officer of the company. Non-compliance of any mandatory requirement of this clause with reasons thereof and the extent to which the non-mandatory i t h b d t d h ld brequirements have been adopted should be specifically highlighted.
  21. 21. COMPLIANCE CERTIFICATECOMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCEON CORPORATE GOVERNANCEON CORPORATE GOVERNANCEON CORPORATE GOVERNANCE To be obtained by the company from the Auditor ofcompany from the Auditor of the Company or from a Practicing Company Secretary. Such certificate shall become the part of Annual Report. Certificate is also to be submitted to Stock Exchange along with the Annual Reportalong with the Annual Report.
  22. 22. Th k F F hThank you. For Further Details Contact : 01143558440 997150410501143558440,9971504105 proglobalcorp@gmail.com

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