A unlisted public Company has its accounts for the year 2018-19 not finalised. However it is liable for the provisions of the Corporate governance such as independent director, women director,, audit committee etc, for the FY 2019-20 but has not complied on the ground that the accounts are not finalised. Whether its contention is right or the provisions of Corporate Governance should have been applied on the basis of provisional accounts figure. pls quote with relevant provisions, if any
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Corporate Governance under Companies Act
Replies (2)
Auditing precedes over governance. It’s an auditors issue and the board will know about it. Governance flaws cannot be detected while auditing can be because the former does not have any thresholds or margins or kpi’s.
When theRe is a corporate failure, the light which sheds or reflects out is that, there is no sound ethical practice at the floor level like internal controls or inexperienced people. Here they don’t have a sound framework for not having an audit committee to speed up finalisation.
This is internally, externally, governance develops policies to keep conflict at bay with external stakeholders so that agency costs will be low and that is how too management is rewarded as good quality management
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