Code of Conduct of ID
This query is : Resolved
29 September 2022
Is it mandatory to host the Code of Conduct of Independent Directors on the website of an unlisted company? If so, which section or provisions mandates this?
06 July 2024
For unlisted companies, hosting the Code of Conduct for Independent Directors on their website is not explicitly mandated by law. However, the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR) do require listed companies to disclose their Code of Conduct for Independent Directors on their websites.
Here's a breakdown based on the relevant provisions:
1. **Companies Act, 2013**: Section 149(8) of the Companies Act, 2013 mandates that every listed company shall have at least one-third of the total number of directors as independent directors. The Act also provides guidelines on the role and responsibilities of independent directors, including adherence to a Code of Conduct.
2. **SEBI LODR Regulations**: Regulation 17(5) of the SEBI LODR Regulations requires listed entities to publish the Code of Conduct for all board members and senior management personnel on their official website.
Since these provisions specifically apply to listed companies, unlisted companies are generally not required by law to host their Code of Conduct for Independent Directors on their website. However, it is considered a good governance practice to have such codes in place and to make them available to stakeholders upon request or through other suitable means of dissemination.
Here's a breakdown based on the relevant provisions:
1. **Companies Act, 2013**: Section 149(8) of the Companies Act, 2013 mandates that every listed company shall have at least one-third of the total number of directors as independent directors. The Act also provides guidelines on the role and responsibilities of independent directors, including adherence to a Code of Conduct.
2. **SEBI LODR Regulations**: Regulation 17(5) of the SEBI LODR Regulations requires listed entities to publish the Code of Conduct for all board members and senior management personnel on their official website.
Since these provisions specifically apply to listed companies, unlisted companies are generally not required by law to host their Code of Conduct for Independent Directors on their website. However, it is considered a good governance practice to have such codes in place and to make them available to stakeholders upon request or through other suitable means of dissemination.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- RATE AND HSN CODE
- Carriage Road Act, 2007 read with Carriage by Road Rules, 2011
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Sale of property held jointly with a non resident Indian
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- Taxability of Partnership firm for FY 2025-26
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
