MCA REPORT ON CORPORATE GOVERNANCE

According to the report on voluntary corporate governance guidelines, prepared by the ministry of
Corporate Affairs (MCA):-Term of Independent Directors cannot exceed six years.

• Term of Independent Directors cannot exceed six years.
• A period of 3 years should elapse before an individual is inducted in the same company in any capacity.
• Companies may have a nomination committee comprising independent directors, including its chairman.
• Audit partner should be rotated once every three years and audit firms should be rotated once every five years.
• A clear demarcation between the roles of the chairman of the board and those of the managing director or the chief executive officer is important.
• The ministry will issue a mandatory corporate governance code within one year. Code will be a mix of guidelines and recommendations of India Inc.