Stock Exchange circular to listed companies - Disclosure on debarment of Directors
Ashish Baid
Respected Professional,
BSE vide its Circular to all the Listed Companies dated June 20, 2018, referred to the instruction from SEBI dated June 14, 2018 communicating to exchanges for enforcement of its orders debarring entities / individuals from accessing the capital markets and / or restraining the position.
Key points to note:
1) Members of Nomination and Remuneration Committee to ensure while appointing an individual as director, to verify whether such person has been debarred by SEBI in any of its order, to hold the position of Director in any listed company.
2) While making an corporate announcement as per Regulation 30 of SEBI LODR for appointment of Director, listed companies need to include the facts that such individual has not been debarred from holding directorship in listed companies by virtue of SEBI order. Non-disclosure on this fact will be treated as inadequate disclosure under Regulation 30 and it may attract for SEBI action.
3) In case if any individual has been debarred by SEBI, such individual shall vacate his office voluntarily and any failure in doing that, company shall initiate the process of removal of such directors in terms of applicable provision of Companies Act, 2013 and intimate SEBI with relevant disclosure.
Attached link of BSE circular to all listed companies:https://www.bseindia.com/corporates/Displaydata.aspx?Id=d30893b5-8e5e-4842-a37d-da3e595ff58c&Page=cir
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CS Ashish Baid
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