Lok Sabha Question No. 204 (UNSTARRED), answered on 2023-12-04
Subject: Transparency in Corporate Management
Ministry: CORPORATE AFFAIRS
Asked by: Pushpendra Singh Chandel

## GOVERNMENT OF INDIA

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 204 ANSWERED ON MONDAY, DECEMBER 04, 2023 AGRAHAYANA 13, 1945 (SAKA)

## TRANSPARENCY IN CORPORATE MANAGEMENT

## QUESTION

## 204.  SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) whether the Government has taken measures to increase transparency in corporate management;
- (b) if so, the details thereof; and
- (c)  the  details  of  the  efforts  being  made by the Government to increase the representation of women in corporate management?

## ANSWER

MINISTER OF STATE (INDEPENDENT  CHARGE)  OF  THE  MINISTRY OF STATISTICS  AND  PROGRAMME  IMPLEMENTATION;  MINISTER  OF  STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF

STATE IN THE MINISTRY OF CORPORATE AFFAIRS

[RAO INDERJIT SINGH]

- (a)  & (b) : The Companies Act, 2013 (Act) and rules made thereunder contain important provisions to ensure transparency in corporate management. The Act and Rules require companies to maintain books of account, various returns and registers in the prescribed form and keep them at their registered offices. The statutory  registers  and  returns  maintained  and  kept  by  companies  can  be inspected as required by members or other security holders or other persons in accordance with section 94 of the Act. The companies are also required to forward notices for the general meetings along with explanatory statements as well  as  other  attachments  for  information  of  shareholders.  Annual  financial

statements are also required to be forwarded to the shareholders. In addition, the companies are required to file various documents, copies of resolutions, returns  with  the  Registrar.  The  disclosures  in  the  Board's  report,  financial statements  and  annual  returns  also  seek  to  ensure  that  every  relevant information  is  available  to  the  stakeholders  as  well  as  in  the  Registry.  The documents kept by the Registrar can be inspected or copies taken electronically by any person in accordance with the provisions of section 399 of the Act. The Act also includes provisions relating to independent directors, Audit Committee, Nomination & Remuneration Committee, independent auditors  &  vigil  mechanism  to  ensure  higher  levels  of  transparency  and accountability. (c) : Second proviso to sub-section (1) of section 149 of the Companies Act, 2013  read  with    Rule  3  of  Companies  (Appointment  and  Qualification  of Directors)  Rules,  2014  provides  that  every  listed  company  and  every  other public company having paid up share capital of Rs. 100 crore or more or having turnover of Rs. 300 crore or more shall have at least one woman director. If  a  company makes default in complying with this provision of the Act, the company and every officer of the company who is in default is liable for penalty provided under section 172 of the Act. These provisions have been included in the Act with a view to increase the representation of women in corporate management.

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