Inaugurating the 2nd Corporate Governance Week programme at Bangalore on 27th August, former Chief Justice of India, Padmavibhushan Sri M N Venkatachaliah said India is going through a transformation and the series of corruption cases are rising like the scum. Hope there is clear water underneath (notwithstanding the decreasing potable water levels !).
Be it an individual, be it a family, be it a society, be it an economy, be it a corporate or be it a nation – good governance is the harbinger of sustainable growth. What then is the sine qua non to ensure ‘Good Governance’ ? Is it systems, processes, bye-laws, guidelines, policies, frameworks, compliance reports, MIS, minutes, certifications, management meetings……..? Nay, governance is that and more. It must be ingrained in the DNA of an organization, in its culture and in its ethos – top driven and encompassing all spheres of activities and stakeholders.
Our vote is clearly in favour of the ancient Indian adage “Dharmo Rakshati Rakshitaha” meaning “Dharma protects those who protect it”. Though there is no exact English equivalent of ‘Dharma’, it could mean ‘good governance’.
In its 6th year of operations, Lex Valorem continues to serve its valued customers in this spirit of ‘giving what is good for them’. Lexspeak is one such initiative.
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Lex Valorem Team
Employees allotted qualification shares or ESOP shares upto 0.5% of the paid up capital of a Company are categorized as persons not having any interest in the capital of the Company. As such no Government approval is required for managerial remuneration payable to such employees even if it exceeds the prescribed limits.
With the prior approval of the Government of India, a citizen of Pakistan or an entity incorporated in Pakistan can now purchase shares and convertible debentures of an Indian company under FDI (Foreign Direct Investment) Scheme, subject however to the condition that the Company is not engaged in a business in the prohibited / restricted sectors pertaining to Defence, Space and Atomic Energy.
Companies with Overseas Direct Investment (ODI) need to file certain modified information / certificates as part of Annual Performance Report in Part III of Form ODI. Section E & F are revised.
Banks to allow premature withdrawal of the deposit by the surviving joint depositor on the death of the other, without seeking the concurrence of the legal heirs of the deceased, if there is a joint mandate from the joint depositors to this effect. There is no penal charge for such premature withdrawal.
The Central Government has notified that a variation of upto 5% is permitted between arms length price and actual price of an international transaction under Transfer Pricing. This means so long as the variation does not exceed 5%, actual price of an international transaction will be treated as the arms length price for the Assessment Year 2012-13.
This article briefly explains about the Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies ( Accounting Standard – 5)
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.