Key Provisions Under The Listing Agreement
To trade on large exchanges, companies must enter into listing agreements with the exchanges themselves. They must meet certain criteria. For example, in 2018, the NYSE had a significant listing requirement that included total shareholder capital for the last three years of more than $10 million, a global market capitalization of $200 million and a minimum share price of $4. The concept of corporate governance in India is not very old. For the first time, the ICN set up a task force in 1995 under The pulse of Mr. Bajaj. Based on this publication, CII published a voluntary code entitled „Desirable Corporate Governance“ in 1998. SEBI had also set up a small number of committees on corporate governance, including the remarkable kumarmanlagam Birla (2000), the Naresh Chandra Committee (2002) and the Narayana Murthy Committee (2002). While the Kumarmangalam Birla Committee presented mandatory and non-compulsory requirements, the Naresh Chandra Committee examined in depth the relationship between auditors and society, the rotation of auditors/partners, the procedure for appointing controllers to audit and audit costs, and the authentic and fair presentation of corporate financial affairs. In addition, the Narayan Murthy Committee focused on the audit committee`s responsibilities, the quality of financial disclosure and the requirement for directors to assess and disclose business risks in company management reports. Section 52 deals with the Corporate Filing and Dissemination System (CFDS) and, under this clause, the company agrees – clause 38 relates to the payment of list fees to the stock exchange and the payment of annual deposit fees to custodians. The Company must pay annual listing fees on the stock exchange on April 30 and annual deposit fees to custodians, calculated on the basis of the company`s capital on March 31 of this year.
Among the most important non-compulsory provisions, India has still not been able to project itself with the highest standards of corporate governance, despite all the mandatory and non-compulsory requirements of Article 49. The 2013 Corporate Act also presented a specific chapter on corporate governance. Under this act, various arrangements have been made among at least 11 heads. Composition of the Board of Directors, Madam Director, Independent Directors, Director of Training and Evaluation, Audit Committee, Appointment and Compensation Committee, subsidiaries, internal audit, SFIO, Risk Management and Compliance Committee, to create a strong framework for corporate governance. When representing the seller, the seller`s lawyer should discuss with his client the extent of the services the client wishes to the real estate agent. The seller`s lawyer should describe in the most concrete and comprehensive way possible the services to be provided by the broker. The ultimate goal is of course an executed sales and sales contract (PSA).