Flagship Research Quarterly of the Indian School of Business (ISB). Find out more

Sign up  |  Log in

Past Issue • Jan-Mar 2014

The Corporate Affairs Perspective

The Indian School of Business (ISB) recently signed a memorandum of understanding with the Indian Institute of Corporate Affairs (IICA) to provide expertise on corporate affairs matters. In this interview, Professor Sanjay Kallapur speaks to Professor Asish K Bhattacharyya of the School of Corporate Governance and Public Policy at the IICA about the IICA’s role in light of the new Companies Act. Select extracts from what Professor Bhattacharya had to say:

On Stakeholders and Other Key Provisions of the Act
The Companies Act 2013 has expanded the concept of stakeholders. The stakeholders under the Act include debt holders, depositors and the others such as the National Stock Exchange (NSE) which in a broad way can be seen as a debt holder. The Act also includes employees and the local community. Second, a much discussed mandate in the Act is for corporate social responsibility (CSR). Third, in the guise of providing immunity to independent directors, the Act has really enforced the accountability of this group. Independent directors will be responsible for the omissions and commissions of the company if they had knowledge of these through the board - or if they colluded with the management or if they did not act diligently. More importantly, the Act has provided a code for independent directors in Schedule IV. These are the basic issues with respect to the Act, vis-a-vis the role of IICA.

ABOUT THE AUTHORS

  • Asish K. Bhattacharyya1

    Asish K Bhattacharyya

    Professor and Head of the School of Corporate Governance and Public Policy at the Indian Institute of Corporate Affairs.
  • Sanjay-Kallapur

    Sanjay Kallapur

    Professor of Accounting at the Indian School of Business, and an independent director on the Board of the Life Insurance Corporation of India.
Scroll To Top