Corporate News February 2022 - Acquisory Bulletin

Chandni Ansari22 Jan, 2025Business

From April 1, 2020, SEBI had mandated that top 500 listed entities must split the role of CMD. The Chairperson of the board was to be a non-executive director and not be related to the Managing Director or the Chief Executive Officer as per the definition of the term “relative” defined under the Companies Act, 2013. ✓ Considering rather unsatisfactory level of compliance achieved so far, with respect to this corporate governance reform, various representations received, constraints posed by the prevailing pandemic situation and with a view to enabling the companies to plan for a smoother transition, SEBI Board has amended this provision from a mandatory requirement and instead made it voluntary.