Employee Stock Option Plans (ESOPs) are an effective tool to align employee interests with long-term shareholder value. Under the Trust Route, the company establishes a trust to acquire shares—either from the secondary market or through fresh issue—and subsequently transfers them to employees upon exercise of vested options. This article explains the step-by-step procedure followed by […]
A bonus issue is a method by which a company issues additional shares to its existing shareholders without any consideration. It involves capitalising the company’s free reserves, securities premium, or capital redemption reserve account, thereby converting undistributed profits into paid-up share capital. For example, if A Limited declares a 1:1 bonus issue, a shareholder holding […]
Declaring a dividend in a listed company is not merely a financial decision — it is a regulated corporate action that requires careful coordination among the finance, management, and compliance teams. The process must strictly adhere to the provisions of the Companies Act, 2013, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR), and […]
The role of the Chief Financial Officer (CFO) in a company is pivotal, overseeing financial management, statutory compliance, strategic planning, and corporate governance. A common query among corporates and professionals is whether a CFO can simultaneously hold the position of a Director in the same company. The legal framework under the Companies Act, 2013, and […]
Brief assignment on recent amendments under SEBI Prohibition of Insider Trading Regulations 2015
In today’s business landscape, transparency and accountability are non-negotiable. One of the most effective ways to ensure this is by having a whistleblower policy in place. But it’s not just about doing the right thing—it’s also about legal compliance, safeguarding your company’s reputation, and protecting your directors from unforeseen risks. Under Section 177 of the […]
A share buyback can be a powerful tool for companies looking to optimize their capital structure, increase shareholder value, or demonstrate confidence in their financial health. However, it is essential for directors to understand the legal framework and the process laid out under the Companies Act, 2013, specifically Section 68, to ensure the transaction is […]
Audit committees are more than just a regulatory formality; they are a cornerstone of good corporate governance and risk management. As per the Companies Act, 2013, particularly Section 177, every listed company and certain other classes of public companies are required to constitute an audit committee to oversee financial reporting, ensure internal controls, and prevent […]
In today’s business environment, transparency is no longer just a legal formality — it is a cornerstone of good governance and a key driver of stakeholder trust. The Companies Act, 2013 and SEBI regulations set out a clear framework for disclosures that ensure companies operate with transparency, uphold ethical standards, and protect the interests of […]
