Improving Corporate Governance in India [electronic resource]: Related Party Transactions and Minority Shareholder Protection /
Organisation for Economic Co-operation and Development.
Organisation for Economic Co-operation and Development.
Paris : OECD Publishing,
2014.
A concern that many markets around the world share in relation to poor corporate governance is the abuse of related party transactions (RPTs). This is particularly true in markets where controlling ownership is predominant. Judging by the frequent reporting of RPTs, this calls for the relevant authorities and companies to be vigilant and have in place an effective oversight framework through which abusive RPTs can be identified, prevented or stopped. This book presents the findings of an OECD policy dialogue with Indian stakeholders on policies to improve the monitoring and prevension of abusive RPTs in India.  
Foreword; Table of contents; Abbreviations and acronyms; Introduction; What are related party transactions and how to prevent abuse; OECD reports on related party transactions; Related party transactions - India's perspective; Legal framework governing related party transactions in India; The Companies Act; Accounting standards; The Income Tax Act 1961; Equity Listing Agreement; SEBI Circular; Areas to be addressed; Suggestions; Defining related party transactions; Approval of major RPTs by a "majority of the minority"; Pre-approval by the audit committee and third-party evaluation of RPTs
Immediate and continuous disclosures rather than periodic onesRequiring approval by shareholders for divestment of major divisions/subsidiaries; Approval of managerial remuneration by disinterested shareholders; Fiduciary responsibility of controlling shareholders; Improving selection mechanism for independent directors; Clarity on liabilities and on remuneration of independent directors; Providing training to independent directors on the business of the company; Improving investor education for better participation at General Meetings; Provision for regulatory support to class action suits
Establishment of specialised courtsConclusions; Notes; Bibliography; Annex. India Peer Review of Related Party Transactionsand Minority Shareholder Rights, OECD, 2012; The ownership and control of Indian listed companies; The enforcement record; Assessment and conclusions; Annex notes
A concern that many markets around the world share in relation to poor corporate governance is the abuse of related party transactions (RPTs). This is particularly true in markets where controlling ownership is predominant. Judging by the frequent reporting of RPTs, this calls for the relevant authorities and companies to be vigilant and have in place an effective oversight framework through which abusive RPTs can be identified, prevented or stopped. This book presents the findings of an OECD policy dialogue with Indian stakeholders on policies to improve the monitoring and prevension of abusive RPTs in India.  
Corporate governance