The idea of independent directors is quite exciting. As per provision under Companies Act, 2013 Independent directors are required to acts as conscience-keepers of the boards,vigilant watchdogs, protectors of the interests of minority shareholders as well as other stakeholders and implementers of regulatory norms. In addition, Independent Directors do not represent in the corporate decision-making. The position of the independent director is one most counterpoise position against the managerial domination of the corporate boards (Eisenberg, 2005). This position has the highest threshold in respect of corporate governance and or prevent corporate fraud or white collar crimes as being an independent director they are also expected to bring out, misappropriation, non- compliance with legal provisions, malpractices etc. in front of regulatory bodies. As they are supposed to work in public interest, they should be guided only by their conscience rather than any other concern. Further, the … [Read more...] about Are Independent Directors Really “Independent” In Indian Companies Dominated By Promoters?
Represented quite a bonus for the company
On April 5, President Obama signed into law the Jumpstart Our Business Startups Act ("JOBS Act"1). The JOBS Act provides new exemptive and other relief under the federal securities laws for smaller businesses trying to raise capital and substantially eases the regulatory burden on banks and bank holding companies by increasing the thresholds for registration and deregistration under the Securities Exchange Act of 1934 ("Exchange Act").Section 12 of the Exchange Act requires a company with more than $10 million in assets and any class of securities held by more than 500 record shareholders to register with the SEC and thereby become a "public company" subject to the periodic reporting and proxy requirements, as well as a variety of other obligations and limitations, under the Exchange Act. Further, companies cannot "deregister" until they fall below the assets test or have fewer than 300 (not 500) shareholders of record. The JOBS Act does not eliminate the Exchange Act registration … [Read more...] about The Impact of the Recently-Enacted JOBS Act: Helping Banks and Bank Holding Companies Stay Private
One question that boggles the mind of all players in every stock market is “What should be the true value of the shares?” To a market regulator, this question is of much more importance. It is the regulator’s duty to take all appropriate measures to ensure that the shares should be priced so as to reflect the fundamentals of the company. Otherwise, it may result in astronomical losses to all the players of the market, from individual investors to big corporate giants.Before the liberalization of economy in 1991, the economic policies of India seemed to control all aspects of industrial development. It was a result of these kinds of policies that the independent India decided to carry on with the Capital Issues (Control) Act, 1947 (hereafter referred to as CICA). The Regime of Controller of Capital Issues Control of capital issues was introduced through the Defence of India Rules in May 1943 under the Defence of India Act, 1939. After the Second World War, it was … [Read more...] about Valuation of Shares and the Importance of Disclosures in the Indian Securities Market
On September 15, 2015, Deputy Attorney General Yates issued a memo shifting the focus of federal prosecutorial efforts with respect to corporate wrong-doing.The memorandum encouraged DOJ prosecutors who identify corporate wrong-doing to shift the emphasis, at least in part, to the individuals who commit corporate wrong-doing, rather than focusing only on the entity. (This shift also will impact DOJ’s civil litigators, who will apply these criteria to decide whether a company respondent will get credit for “cooperating” both during a case, and even thereafter, and because the memo requires cooperation on these issues between criminal and civil DOJ attorneys.) It is quite common that a corporation accused of an improper act will address a threat of prosecution by agreeing to pay substantial fines, and by offering to undertake expensive remedial actions. This result has been defended on the grounds that the beneficiaries of the wrong-doing are the shareholders of the … [Read more...] about A Shift of Emphasis at the DOJ – the Yates Memo
Banned in other countries, little-known ingredient sparking renewed concernsMARIETTA, Ga. — It's Monday night at the Battle & Brew, a gamer hangout in this Atlanta suburb. The crowd is slumping in chairs, ears entombed in headphones, eyes locked on flat-screen monitors and minds lost in tonight’s video game of choice: "The Elder Scrolls V: Skyrim."To help stay alert all night, each man has an open can of "gamer fuel" inches from his keyboard. "I've seen some of these dudes plow through six sodas in six hours," said Brian Smawley, a regular at the gamer bar. Kyle Victers, a regular at the Battle & Brew in Conyers, Ga., chugs 'gamer fuel' for the sugar and caffeine. Unlike some citrus-flavored drinks, his Monster beverage does not contain BVO. Brett Israel/Environmental Health NewsGamers say they chug their fuel for the sugar and caffeine, but drinkers of Mountain Dew and some other citrus-flavored drinks are also getting a dose of a synthetic chemical … [Read more...] about Brominated Battle: Soda Chemical has Cloudy Health History