mechanism - an important and new concept under the new Companies
Act, 2013 (Companies Act) - appears to have gone unnoticed by
corporates. However, vigil mechanism, akin to the popular concept
of "whistle blowing," has been introduced in a bare bones manner.
Whistle-blowing is a popular concept in the US, the UK and
other European countries. It refers to calling the attention of
the top management to any wrongful conduct within the
All (i) listed companies, (ii) companies that accept deposits from
the public and (iii) companies that have borrowed money from banks
and public financial institutions in excess of INR50 crores
(Covered Companies) are required to establish a vigil mechanism
for their directors and employees to report their genuine concerns
responsibilities, extends certain powers to the audit committee to
investigate into the financial matters of a company either suo
motu or on being referred by the board of directors of a company.
>To draft a policy and
establish a vigil mechanism
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