NEW DELHI, Oct 28: The Corporate Affairs Ministry has suggested to companies that they disclose details of executive pay and shareholding patterns of promoters on their websites.
The ministry’s guidelines for voluntary disclosure on companies’ websites are aimed at improving corporate governance practices and spreading awareness among investors.
They also require companies to provide details about share transactions by their directors and relatives on their websites.
On voluntary basis, a company can provide details of its board of directors, promoters and their shareholding apart from “remuneration of managing/wholetime directors, if any”, according to the Ministry.
Besides, a firm can furnish dates and the number of times board meetings and annual general meetings were held in the last three years along with attendance of each director.
Another suggestion, made in the interest of investors, is disclosure of information regarding complaints about insider trading transaction in the last three years.
Details of shareholder’s complaints during the last three years—received, resolved and pending—and “press release, if any for investors/shareholders, auditor’s qualification if any, penalty imposed by any government agency/court, complaints about insider trading transaction in the last three years,” could be furnished, the guidelines have said.
Another suggestion is furnishing of particulars of shares of the company acquired/sold by the directors and their relatives during last three years.
Moreover, another proposal is that companies’ can provide details about their subsidiaries and related shareholding information.
According to the Ministry, companies having paid up capital of not less than Rs 10 crore or having more than 100 members may maintain a functional website with basic corporate information.
These measures, as per the Ministry, would help in boosting “investor confidence” and in fostering the country’s economic growth.
The Ministry has said that “details about important pending litigations likely to affect the financial position and working results of the company,” could also be disclosed.
Under the investors’ section of a company website, it should have facility for lodging online investor complaints, details of related parties and transactions with them for the last three years besides information regarding compliance with mandatory requirements.
Also, the guidelines call for furnishing information on activities related to corporate social responsibilities, environment protection along with expenditure incurred for such initiatives in the last three years. (PTI)
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