SEBI proposes norms for overhaul of Corporate Governance

New Delhi Oct 6: In a bid to strengthen the corporate governance and bring transparency SEBI has proposed slew of norms .some of the sweeping changes suggested by the panel appointed by the market regulator are

# Limiting chairmanship to only non-executive directors.
# Appointing at least one woman as independent director.
# Increasing the minimum board strength to six members and the number of board meetings to five in a year.

# A minimum remuneration of Rs 5 lakh per annum for independent directors and a sitting fee of Rs 20,000- 50,000 for each board meeting.

# Mandatory to seek public shareholders' approval for annual remuneration of executive directors from promoter family if the amount exceeds Rs 5 crore or 2.5 percent of the company's net profit.

# Listed entities would have to give detailed reasons for the resignation of an independent director.

# The companies should be required to disclose the list of competencies/expertise that its board members actually possess.

# Top 100 companies by market capitalization should webcast their shareholder meeting.

# Top-500 listed companies should have a risk management committee of boards for Cyber Security.

#Listed entities should constitute an information technology committee that will focus on digital and other technological aspects.

The Above recommendations assume significance because of the recent internal disputes that have emerged in Tata Sons and Infosys and have raised the doubts on corporate governance.