Semester: II, Paper type: Core Paper Paper code…….

Name of the Paper:CORPORATE LAWS Credit: 4

Total Hours per Week: 6 Hrs, Lecture Hours: 6hrs. Tutorial Hours: Nil. Practical
Hours: Nil
UNITT – 1: - Introduction Teaching Hours: 18Hrs
Corporate Laws – Corporate Personality – Corporate Governance – Concept – Corporate
Governance Practices and Codes: Provisions under the Companies Act. – E-Governance
UNITT – 2: - Competition ACT Teaching Hours: 18Hrs
Competition Act, 2000 – Introduction – Objectives – Important Definitions – Prohibition of
Anti-Competitive Agreements – Prohibition of Abuse of Dominant position – Regulation of
Combinations – Competition Commission of India – Composition – Duties, Powers and
Functions – Penalties – Appellate Tribunal – Procedures & Powers – Powers of the Central
Government.
UNITT – 3: - SEBI Act 1992 Teaching Hours: 18Hrs
The Securities and Exchange Board of India Act, 1992 – Introduction – Objectives –
Important Definitions – Definitions under Securities Contracts (Regulations) Act, 1956 -
Powers and Functions of SEBI – Registration – Penalties – Adjudication – Appellate
Tribunal – Appeals – Procedure and Powers of The Securities Appellate Tribunal – Power to
make Rules and Regulations – SEBI Issue of Capital and Disclosure Requirements
Regulations, 2018 – General conditions for Public Issues and Rights Issues – Conditions for
Initial Public Offer – Conditions for Further Public Offer – Pricing - Promoters Contribution
– Listing of Securities – Conditions for Listing – Types of Listing – Procedure for Listing
Requirements – Benefits of Listing – Defects of listing - The SEBI (Prohibition of Insider
Trading) Regulations, 2015
UNITT – 4: - Foreign Exchange Management Act 1999 Teaching Hours: 18Hrs
The Foreign Exchange Management Act, 1999 – Introduction – Objective – Differences and
Similarities between FERA and FEMA - Important Definitions under the Act – Provisions
related to Regulation and Management of Foreign Exchange – Authorized Person – Offences
– Contraventions & Penalties – Adjudication & Appeals – Appellate Tribunal – Directorate
of Enforcement
UNIT – 5: - Insolvency and Bankruptcy code Teaching Hours: 18Hrs
Insolvency and Bankruptcy Code, 2016 – Introduction – Objectives – Applicability of the
Code – Important Definitions – Relationship between Bankruptcy, Insolvency and
Liquidation - Corporate Insolvency Resolution Process – Liquidation Process – Fast Track
Insolvency Process for Corporate Persons – Voluntary Liquidation – Adjudicating Authority
– Offences and Penalties – Insolvency and Bankruptcy Board of India – Insolvency
Professional Agencies – Insolvency Professionals – Information Utilities – Powers of Central
Government

1
 UNIT – 1
Corporate Laws – Corporate Personality – Corporate Governance – Concept – Corporate
Governance Practices and Codes: Provisions under the Companies Act. – E-Governance

Distinguish between Corporate Law and Commercial Law

Corporate Law Commercial Law

Corporate law concerns the formation of Commercial law is about the sale and
companies and how they‟re operated and distribution of goods.
managed

What is Corporate Law?

Corporate law is the body of laws, rules, regulations and practices that govern the
formation and operation of corporations. It‟s the body of law that regulates legal entities that
exist to conduct business. The laws touch on the rights and obligations of all of the people
involved with forming, owning, operating and managing a corporation. Corporate Law is
concerned with corporate governance and corporate finance.

The major characteristics of corporate law

There are five principles that are common to corporate law:

1. Legal personality
Corporation owners pool their resources into a separate entity. That entity can use the
assets and sell them. Creditors can‟t easily take the assets back. Instead, they form their own
entity that acts on its own.
2. Limited liability
When a corporation gets sued, it‟s only the corporation‟s assets that are on the line.
The plaintiff can‟t go after the personal assets of the corporation‟s owners. A corporation‟s
limited liability allows owners to take risks and diversify their investments.

3. Transferrable shares
If an owner decides they no longer want a share in the corporation, the corporation
doesn‟t have to shut down. One of the unique features of a corporation is that owners can
transfer shares without the same difficulties and hassles that come with transferring
ownership of a partnership. There can be limits on how shareholders transfer ownership, but
the fact that ownership can be transferred allows the corporation to go on when owners want
to make changes.

2
4. Delegated management
Corporations have a defined structure for how they conduct their affairs. There‟s
a board of directors and officers. These groups share and split decision-making authority.
Board members hire and monitor officers. They also ratify their major decisions. The
shareholders elect the board.
Officers handle the day to day operation of the company. They‟re the leaders for
conducting transactions and making the business run each day. With a defined leadership
structure, parties that do business with the corporation have the assurances that actions of
officers and the board of directors are legally binding on the corporation.
5. Investor ownership
Owners have a say in making decisions for the corporation, but they don‟t directly run
the company. Investors also have the right to the corporation‟s profits. Usually, an owner has
decision-making authority and profit sharing in proportion to their ownership interest.
Owners typically vote to elect board members.

Different Types of Corporate Laws:

1. Contract Law
A contract is a legal agreement between at least a two of companies. Contract law is
about the rights and responsibilities of agreeing. Courts can enforce contract laws. If one
party doesn‟t follow the rules of the contract, the other party can go to court and get back
what they lost. Most of the time, the non-breaching party can get financial compensation. The
courts can inform the company that broke the contract to do what they agreed upon. Contracts
are a type of private law made up by the agreeing parties.

2. Acquisitions and Mergers

One of the most common words in business is “merger” or “acquisition.” People don‟t
always know what these words mean. Both terms are applicable when two firms join, but
these terms have essential differences. A merger happens when two separate groups form a
new, bigger group. However, in an acquisition, one company buys another one out.

3. Corporate Governance
Corporate governance is about how businesses operate and exercise business controls.
Boards of directors are in charge of running their businesses. The shareholders are in charge
of governance. They choose the auditors and the directors, ensuring that the company has a
good governance structure. The board‟s job is to set the company‟s long-term goals, provide
leadership to make them happen, supervise business management, and report to shareholders
on their performance.

3
4. Venture Capital
Venture Capital (VC) can be private equity or investors‟ financing to start-ups and
small businesses with a long-term growth plan. Wealthy people, investment banks, and other
financial institutions usually pay for venture capital. However, it doesn‟t always come in the
form of money. It can also come in the shape of managerial or technical skills. Venture
capital is suitable for small businesses with a lot of potential for growth or companies with
bright prospects of potential growth.

5. Corporate Securities Law

Corporations have to follow a set of rules for their internal affairs and operations. To
run a public company, you must follow corporate securities law. Securities law must be the
same because all investors want to ensure fair prices when they trade.

Corporate Personality - Meaning

Corporate personality is the fact stated by the law that a company is recognized as a
legal entity distinct from its members. A company with such personality is an independent
legal existence separate from its shareholders, directors, officers and creators. This is
famously known as the veil of incorporation. Other such examples of institutes with corporate
personalities include banks, universities, corporate bodies, colleges, an association of
persons, etc.
Examples of Stakeholders are
 Investors
 Employees
 Customers
 Suppliers
 Communities
 Governments
 Trade associations etc.,

Give the effects of a Corporate Personality

1. A Company has limited Liability
2. A Company can sue and be sued in its own right
3. A Company can be a party to contracts (For Example, buy goods; employ
staff).
4. A Company can continue to function after the death of a shareholder.

4
Theories of Corporate Personality
Now, there are many theories that show and reflect the nature and scope of this corporate
personality as created by law. These theories offer us a theoretical perspective on the topic
allowing us a better understanding. However, in the real world with practical problems, they are
of little use. No one theory completely captures the essence of corporate personality. So here we
will look at a few of the popular ones,

1] Fiction Theory
As per the fiction theory, a corporation exists only as an outcome of fiction and metaphor. So the
personality that is attached to these corporations is done purely by legal fiction. The legal person
is created only in the eyes of the law for a specific purpose. The theory was propounded by
Savigny and backed by Salmond and Holland.

2] Concession Theory
This is similar to the fiction theory. However, it states that the legal entity has been given a
corporate personality or a legal existence by the functions of the State. So as per this theory, only
the State can endow legal personalities, not the law.

3] Realist Theory
As per the realist theory, there is really no distinction between a natural person and an artificial
person. So a corporate entity is as much a person as a natural person. So the corporation does not
owe its existence to the state or the law. It just exists in reality. This is not a very practical theory
as it does not apply in the real world.

4] Bracket Theory
This is one of the more famous and feasible theories of corporate personality. The bracket theory
is also known as the symbolist theory which states that a corporation is created only by its
members and its agents.So the people who represent the corporation make up the corporation.
The law only puts a bracket around them for convenience purposes. So we consider these
members and the corporation as one unit. In the practical world, however, we find that the
personality of the corporation is separate than that of its members and agents

Corporate governance - Meaning

Corporate governance is based on a set of rules, bylaws, policies and procedures to
ensure company accountability. When done correctly, it establishes a framework for attaining
a company's objectives in all spheres of management. It also recognizes the importance of
shareholders.

5
Principles of Corporate Governance
1. Accountability: Accountability makes sure that the management of a firm is
accountable to the board members of the firm who are accountable to the
shareholders.
2. Fairness: Fairness refers to the way a firm treats its minority stakeholders including
minority shareholders, foreign investors, and employees.
3. Transparency: Transparency is responsible for the accurate timely and high-quality
disclosure of all the firm‟s substantial announcements including financial statements,
annual reports, investor presentations, etc.
4. Independence: The management should make independent decisions and therefore,
independence is meant to avoid conflict of interest situations.
5. Sustainability: Sustainability refers to the development that meets the needs of the
present stakeholders without adversely affecting the ability of future generations to
meet their needs.
6. Openness: Openness ensures that material about current events in the company's
affairs must be delivered timely with the exception of commercially confidential
information.
7. Reputation: Reputation is a very important aspect for a firm, especially a firm that is
publicly listed. The share price of a company is usually directly and strongly
correlated to the reputation of the firm which may be good or bad.
8. Stakeholder Interface: The stakeholder interface encompasses well-defined
shareholder rights. Stakeholder interface includes well-organized shareholder
meetings, protection of minority shareholders, well-defined and transparent dividend
policies, etc.
9. Good Board Practices: Good board practices are associated with appropriate board
procedures, well-defined stakeholders‟ authorities, evaluation and training of board
members, etc.
10. Control Environment: Control environment focuses on internal control procedures
including risk management frameworks, disaster management systems, media
management techniques, independent internal audit committees, etc.
11. Board Commitment: Board commitment ensures that the board seriously addresses
the corporate governance matters and allocates a sufficient amount of resources for
the same.

6
Benefits of Corporate Governance
1) Good corporate governance creates transparent rules and controls, provides guidance
to leadership, and aligns the interests of shareholders, directors, management, and
employees.
2) It helps build trust with investors, the community, and public officials.
3) Corporate governance can provide investors and stakeholders with a clear idea of a
company's direction and business integrity.
4) It promotes long-term financial viability, opportunity, and returns.
5) It can facilitate the raising of capital.
6) Good corporate governance can translate to rising share prices.
7) It can lessen the potential for financial loss, waste, risks, and corruption.
8) It is a game plan for resilience and long-term success.

Issues of Corporate Governance

The canvas of Corporate Governance is very large. However, there are some important issues
that should not be lost sight of. These are –
1. Conflict of Interest:
Conflict of interest arises when a person/entity promotes his/her/its interest at the
cost of that of the company. While law requires that conflict of interest should be avoided,
identification and removal of conflict is not always easily.
2. Asymmetry of information:
Asymmetry of information should be reduced to the extent possible, among the
community of stakeholders. Asymmetry can lead to persons with faster or better access to
information taking undue advantage thereof, resulting in unjust enrichment of some persons.
3. Separation between ownership and management:
Ownership and management are two different functions, and should not ideally
reside in the same set of individuals. Further, if these roles are separated, owners should not
enter into the territory of management.
4. Independence of the Board:
For the Board to function effectively, it should be independent, in spirit. Failing this, the
Board would end up rubberstamping management proposals. True independence is a state of
mind. An independent Board is necessary to objectively hold management accountable.
5. Checks and balances:
Proper checks and balances, commensurate with the size of the corporate should be in
place.

7
6. Compliance with law and regulations:
A good corporate should comply with laws and regulations. Failure to do so will
invite severe negative consequences, including, but not limited to, legal proceedings.
7. Disclosure and transparency:
All material issues/ events related to a company should be disclosed in a time bound
manner to the stakeholders of the company. Sometimes companies do not make true and
complete disclosures, and are not transparent about some important affairs of the company.
8. Minority shareholders and other stakeholders:
A „controlling shareholder‟ has significant powers and influence within a company.
He/she/they may, at times, misuse this power, at the cost of minority shareholders and other
stakeholders. While promoting the long-term interests of the company, it should be ensured
that the interest of any shareholder, controlling or minority, are not oppressed.
9. Accountability:
The management is accountable to the Board, and the Board in turn is accountable to
the shareholders of a company. If either of them thinks of himself/herself as the owner, it will
go against the grain of accountability.
10. Code of conduct or ethics:
While profit-maximization is an important goal of any company, companies
should adopt ethical practices, which will promote reputation as well as the business
prospects of the company.
11. Succession planning:
A company is a “going concern”. Lack of a proper succession planning policy/process
can leave the company with no „back-ups‟ as and when there are exits, whether planned or
unplanned.
12. Risk management:
The Boards and the Risk Management Committees (RMC) often fail to anticipate
risks, and provide for their mitigation. While anticipated risks may be in the radar of the
Board and RMC, unanticipated risks also need to be addressed, as and when they arise.
13. Focus on human resources:
Attrition levels, remuneration structure, employee friendly policies etc are all
important factors that the Board should not lose sight of. It is the human resource capital that
sets a company apart from its competitors.

8
14. Remuneration structure:
Most companies do not benchmark remuneration of senior executives with industry
standards. The performance of the company is also not taken into consideration. A proper
compensation structure goes a long way in motivation and retention of employees.
15. Corporate citizenship:
With ESG becoming increasingly important, a company should be seen as being a
good corporate citizen, by contributing proactively to society, and the environment. CSR,
which is a mandatory requirement, is no longer adequate.
Regulatory framework on corporate governance
The Indian statutory framework has, by and large, been in consonance with the
international best practices of corporate governance. Broadly speaking, the corporate
governance mechanism for companies in India is enumerated in the following enactments/
regulations/ guidelines/ listing agreement:
1. The Companies Act, 2013 inter alia contains provisions relating to board constitution,
board meetings, board processes, independent directors, general meetings, audit committees,
related party transactions, disclosure requirements in financial statements, etc.
2. Securities and Exchange Board of India (SEBI) Guidelines: SEBI is a regulatory
authority having jurisdiction over listed companies and which issues regulations, rules and
guidelines to companies to ensure protection of investors.
3. Standard Listing Agreement of Stock Exchanges: For companies whose shares are
listed on the stock exchanges.
4. Accounting Standards issued by the Institute of Chartered Accountants of India
(ICAI): ICAI is an autonomous body, which issues accounting standards providing
guidelines for disclosures of financial information. Section 129 of the New Companies
Act inter alia provides that the financial statements shall give a true and fair view of the state
of affairs of the company or companies, comply with the accounting standards notified under
s 133 of the New Companies Act. It is further provided that items contained in such financial
statements shall be in accordance with the accounting standards.

9
5. Secretarial Standards issued by the Institute of Company Secretaries of India
(ICSI): ICSI is an autonomous body, which issues secretarial standards in terms of the
provisions of the New Companies Act. So far, the ICSI has issued Secretarial Standard on
"Meetings of the Board of Directors" (SS-1) and Secretarial Standards on "General Meetings"
(SS-2). These Secretarial Standards have come into force w.e.f. July 1, 2015. Section 118(10)
of the New Companies Act provide that every company (other than one person company)
shall observe Secretarial Standards specified as such by the ICSI with respect to general and
board meetings.

Key legal framework for corporate governance in India

The Companies Act, 2013
The Government of India has recently notified Companies Act, 2013 ("New Companies
Act"), which replaces the erstwhile Companies Act, 1956. The New Act has greater emphasis
on corporate governance through the board and board processes. The New Act covers
corporate governance through its following provisions:
1. New Companies Act introduces significant changes to the composition of the boards
of directors.
2. Every company is required to appoint 1 (one) resident director on its board.
3. Nominee directors shall no longer be treated as independent directors.
4. Listed companies and specified classes of public companies are required to appoint
independent directors and women directors on their boards.
5. New Companies Act for the first time codifies the duties of directors.
6. Listed companies and certain other public companies shall be required to appoint at
least 1 (one) woman director on its board.
7. New Companies Act mandates following committees to be constituted by the board
for prescribed class of companies:
 Audit committee
 Nomination and remuneration committee
 Stakeholders relationship committee
 Corporate social responsibility committee

10
E-Governance in India
Introduction
1) The first step towards electronics governance in India was marked by the formation of
the Department of Electronics in 1970.
2) With the motive to computerize all district offices in the country, the District
Information System program was launched by the National Informatics Centre (NIC)
which was established in 1977.
3) The launch of NICNET– the national satellite-based computer network in 1987
provided the push for e-governance.
4) There was a setting up of a National Task Force on Information Technology and
Software Development in 1998.
5) The creation of the Ministry of Information Technology happened at the Centre in
1999.
6) The National Institute for Smart Government (NISG) was set-up at Hyderabad in the
year 2002.
7) A National Policy on Open Standards for e-Governance was notified in November
2010.
8) The National Policy on Information Technology (NPIT) was approved in 2012.

What is the meaning of e-governance?

Electronic governance or e-governance implies government functioning with the
application of ICT (Information and Communications Technology). Hence e-Governance
is basically a move towards SMART governance implying: simple, moral, accountable,
responsive and transparent governance.

Examples of e-governance include Digital India initiative, National Portal of

India, Prime Minister of India portal, Aadhaar, filing and payment of taxes online,
digital land management systems, Common Entrance Test etc.

Objectives of E Governance
The objectives of e governance are as follows-

1. One of the basic objectives of e-governance is to make every information of the

government available to all in the public interest.
2. One of its goals is to create a cooperative structure between the government and the
people and to seek help and advice from the people, to make the government aware of
the problems of the people.
3. To increase and encourage people‟s participation in the governance process.
4. E-Governance improves the country‟s information and communication technology
and electronic media, with the aim of strengthening the country‟s economy by
keeping governments, people and businesses in tune with the modern world.
5. One of its main objectives is to establish transparency and accountability in the
governance process.
6. To reduce government spending on information and services.

11
Features of E Governance
It has been proven from the concept of e-governance that it is a powerful means of public
service in the present era. Some of its features can be found by observing the functioning of
e-governance.

1. De bureaucratization: Due to e-governance, the gap between the people and the
government in all the services of the government is narrowing and the dependence of
the people on the bureaucracy is also greatly reduced.
2. E-Services: Its main feature is the provision of services through the Internet. As a
result, we get G2C, G2B, G2E, etc. services. This is already discussed in the section
of „types of governance‟.
3. International Services: through e-governance, all the essential services can be
delivered to the citizens who are living outside of their country for job purposes or
any other reasons.
4. It enhances the right to express to the citizens. Using the means of e-governance
anyone can share their views with the government on any bill or act or decision taken
by the government.
5. Economic Development: With the introduction of e-governance, various information
like import-export, registration of companies, investment situations, etc. are available
through the internet. As a result, time is saved, procrastination decreases, and
economic dynamism increases.
6. Reduce inequality: using e-governance tools everyone can gather information and
empower themselves. In this globalized world, knowledge is power, and means of e-
governance empower us by providing relevant information at minimal cost, effort,
and time.

Advantages of e-Governance

1) Improves delivery and efficiency of government services

2) Improved government interactions with business and industry
3) Citizen empowerment through access to information
4) More efficient government management
5) Less corruption in the administration
6) Increased transparency in administration
7) Greater convenience to citizens and businesses
8) Cost reductions and revenue growth
9) Increased legitimacy of government
10) Flattens organizational structure (less hierarchic)
11) Reduces paperwork and red-tapism in the administrative process which results in
better planning and coordination between different levels of government
12) Improved relations between the public authorities and civil society
13) Re-structuring of administrative processes

12
Types of E Governance
E-Governance can be considered as the social inclusive policy for development of
transparency and accountability of both people in society and administration. This policy
involves providing the services to the people with collection of information through the
institutional and communicational development.

Source: https://schoolofpoliticalscience.com/what-is-e-governance/

It provides quality services in several ways. Those ways are also called as types of e-
governance. These are mentioned below-

1. G2C (Government to Citizen)

2. G2G (Government to Government)
3. G2B (Government to Business)
4. G2E (Government to Employee)

13
1. G2C (Government to Citizen)

As people are the key concept of politics and government as well as governance, the
government is compelled to connect with citizens through the transparent and accountable
order. In this connection the government is responsible for promoting the social
opportunities and public services in the field of-

 Transportation (Registration of motor vehicles, Issue of driving licenses, Issue of

plying permissions, Tax and fee collection through cash and bank challans and control
of pollution etc.),
 hospitals (linking of various hospitals in different parts of the country to ensures
better medical services to citizens),
 education ( availability of the e-learning modules to the citizens, right to education),
 Online job portal and various customer services.
It also ensures services such as issue of certificates, job cards, passport, ration cards,
payments of bills and filing the taxes from the door step through e-governance platform. The
main objectives of the G2C services are to ensure equitable distribution of information for all,
acceptance of citizen‟s feedback, and improving welfare services.

2. G2G (Government to Government)

G2G has been referring to raising the quality of the government process by cost cutting,
managing performance, and making strategic connections within government. It enables
government institutions to be more efficient and more effective by the use of IT tools such as-

 Live fingerprints scanning and verification,

 Electronic entry of reports and paperwork etc.
The major key areas in this type of e-governance are

 E-Secretariat (all the valuable information regarding the function of the government
are interlinking throughout the various departments),
 E-Police (police personnel records, criminal records etc), and
 E-Court (creating a database of all the previous cases, pending and ongoing cases) and
Statewide Networks (Kumar: 2011).
3. G2B (Government to Business)

G2B is mainly concerned with these things-

 E-taxation,
 Getting a license from the government etc.
 Secure Electronic Transactions.
It has included the policy of government with business. According to S.P Kumar, „the
essentials for achievement of G2B services for secure and authentic transactions include:
Standards for electronic transactions, a secure payment mechanism and Public key
infrastructure‟ (Kumar: 2011).

14
4. G2E (Government to Employee)

The G2E model refers to providing information and services from government to employee
and employee to government as well. It involves training through-

 e-learning methods;
 Consolidating the employee and
 Share of knowledge among the employees.
It has also facilitated the employee to access information regarding pay and benefit policies
and manage their profits through online.

E-Governance Initiatives
Steps taken to promote e-governance in India are as follows:

1) A National Task Force on Information Technology and Software Development was

set-up in 1998.
2) The Ministry of Information Technology was created at the Centre in 1999.
3) A 12-point agenda was listed for e-Governance for implementation in all the central
ministries and departments.
4) The Information Technology Act (2000) was enacted. This Act was amended in 2008.
5) The first National Conference of States‟ IT Ministers was organised in the year 2000,
for arriving at a Common Action Plan to promote IT in India.
6) Government set-up NISG (National Institute for Smart Government).
7) The state governments launched e-Governance projects like e-Seva (Andhra Pradesh),
Bhoomi (Karnataka), and so on.
8) The National e-Governance Plan (NeGP) was launched. It consists of 31 Mission
Mode Projects (MMPs) and 8 support components.
9) The National Policy on Information Technology (NPIT) was adopted in 2012.

What are the Recent Government Initiatives to Promote E-Governance in India?

I.MyGov Initiative
Atal Innovation Mission and MyGov have collaborated together with NITI Aayog to
launch the „#InnovateIndia Platform‟. The platform will be a citizen-centric platform of the
Government of India.
Key Highlights
 The portal will serve as the common point for all the innovation happening across
the nation.
 It creates the much-needed innovations platform for registering both grassroots and
deep-tech innovators at a national level.

15
  Those searching for a critical innovation can leverage the portal advantageously for
the benefit of the economy as well as national social needs.
Some of the features of this platform are:
 It is open to all Indian citizens.
 The users can view, comment, share and rate the innovations crowd sourced on the
platform.
 View the leaderboard which is calculated based on the votes on each innovation.
 Citizens can share their/organizations/someone else‟s innovation on the platform.
 Innovations can also be shared on various social media platforms such as
WhatsApp, Facebook, and Twitter
II. National Scholarships Portal (NSP)
A recent investigation has found that the money meant for poor students under
the Pre-Matric Scholarship Scheme in Jharkhand has been siphoned off and is not reaching
the students.
Key Points
About the Scheme:
 It is a centrally funded scholarship scheme for students in all states, which opens
every year and has to be applied between August and November.
 Aim: To help students of minority communities‟ viz. Muslims, Christians,
Sikhs, Parsis, Jains and Buddhists from families with annual income below Rs. 1
lakh.
 Eligibility: Students need to score at least 50% in their class exams.
 Structure of the Scholarship: It is given in two tiers every year to:
a).Students in class 1 to 5: Rs. 1,000 per year.
b).Students of class 6 to 10: Rs. 10,700 if a hosteller or Rs 5,700 if a day
scholar.
Application Process:
 Eligible students need to register at the National Scholarship
Portal (NSP) and submit educational documents, bank account details
and Aadhaar numbers among other documents.
 The scheme is online and one can apply for a fresh or renewal
scholarship on the NSP or through a mobile application of NSP.

16
Suggestions for Improvement:
 The government is planning to bring a single national scholarship scheme by
merging all the current scholarship schemes.
 The move came after a multi-crore scam was reported in the post-matric scholarship
scheme for Scheduled Castes (SC) in Punjab in August 2020.
National Scholarship Portal
 It is a “one-stop” solution through which various services, starting from student
application, application receipt, verification, processing, and disbursal of various
scholarships to students are facilitated.
 It is taken as Mission Mode Project (MMP) under Digital India and aims at
providing a simplified, accountable, responsive and transparent system for faster
and effective disbursal of scholarship to eligible applicants directly into their
account through Direct Benefit Transfer (DBT) without any leakages.
III. Darpan Portal
R&D PORTAL FOR MINING: SATYABHAMA
The Ministry of Mines has launched a portal "SATYABHAMA (Science and
Technology Yojana for Atmanirbhar Bharat in Mining Advancement)" with an aim to
promote research and development in the mining and minerals sector.
Key Points
1. The Portal has been launched to increase efficiency and effectiveness of the Science
and Technology Programme Scheme.
 Under the Science and Technology Programme Scheme, the Ministry of
Mines promotes research in applied geosciences, mineral exploration,
mining and allied areas, mineral processing, optimum utilization and
conservation of the mineral resources of the country.
 The Ministry of Mines provides funds to Academic institutions,
universities, national institutes and R&D institutions recognized with the
Department of Scientific and Industrial Research (under the Ministry of
Science & Technology) for implementing R&D projects.
2. This portal will allow online submission of project proposals along
with monitoring of the same and utilisation of funds.
3. The portal has been designed, developed and implemented by the National
Informatics Centre (NIC).
4. The portal is also integrated with NGO Darpan Portal of NITI Aayog.
17
  NGO-DARPAN is a platform that provides space for interface between
Non-Government organizations (NGOs)/Voluntary Organizations (VOs) in
the country and key Government Ministries/Departments/Government
Bodies.
 it is an e-governance application offered by NITI Aayog to electronically
maintain data and transparency regarding NGOs/VOs in the country.
 The NGO-DARPAN was earlier maintained by erstwhile Planning
Commission, which has been replaced by the NITI Aayog w.e.f.
1st January, 2015.
IV. DigiLocker
The Ministry of Electronics and Information Technology (MeitY) has been asked by the
Delhi High Court to give its stand on a petition against the rules pertaining to the operation of
DigiLocker.
 The petition seeks striking down of the Information Technology (Preservation
and Retention of Information by Intermediaries Providing Digital Locker
Facilities) Rules 2016 because DigiLocker does not provide a nomination facility
under this rule.
 Because of this rule, all the documents would not be accessible by the family or
friends and automatically get passed on to the government on the user‟s death.
Key Points
 DigiLocker is a flagship initiative of MeitY under „Digital India‟ programme.
 This is government‟s effort to create an electronic version of documents, which
can be easily verified and stored in printable format.
 The users can store their documents such as insurance, medical reports, PAN card,
passport, marriage certificate, school certificate and other documents in the digital
format.
 The locker can be accessed by individuals, using their mobile number.
 Technology companies such as Google and Dropbox offer storage space for users
to store documents.
 Apart from e-documents, DigiLocker can store a Uniform Resource Identifier
(URI) link of e-documents issued by various issuer departments.

18
V. National Center of Geo-informatics
On the Occasion of the 1st Anniversary of the Release of Geospatial Data, the
Government said that geospatial technology along with Drones will survey all the over 6
lakh Indian villages under the SVAMITVA scheme. Also the pan-India 3D Maps will be
prepared for 100 Indian cities.
 Geospatial Policy will be announced soon as the liberalization of the
guidelines has yielded very positive outcomes within one year‟s time.
 SVAMITVA Scheme is a reformative step towards establishment of clear
ownership of property in rural inhabited (Abadi) areas.
VI. National e-Governance Plan
The National e-Governance Plan (NeGP) is an initiative of the Government of India
to make all government services available to the citizens of India via electronic media. The
mission of e - Kranti is to ensure a Government wide transformation by delivering all
Government services electronically to the citizens through integrated and interoperable
systems via multiple modes while ensuring efficiency, transparency and reliability of such
services at affordable costs. The main components of the e-government infrastructure are
integrated network infrastructure for state bodies, E-government portal, E-government
gateway, State register of information resources and systems, e-signature, e-document
circulation and e-government data center (under preparation).

Cadbury Committee
Introduction
The Committee was set up in May 1991 by the Financial Reporting Council, the London
Stock Exchange, and the accountancy profession. The report embodied recommendations
based on practical experiences and with an eye on the US experience, further elaborated
after a process of consultation and widely accepted. In December 1992, the Cadbury
Committee published their Code of Best Practice. The recommendations, which largely
reflected perceived best practice at the time, included separating the roles of CEO and
chairman, having a minimum of three non‐executive directors on the board and the
formulation of audit committees. The Code also advocated that a more active role be taken
by institutional investors in the promotion of good practice in corporate governance.
What is Cadbury committee?
The stated objective of the Cadbury Committee was 'to help raise the standards of
corporate governance and the level of confidence in financial reporting and auditing by
setting out clearly what it sees as the respective responsibilities of those involved and what it
believes is expected of them'.

19
What is the purpose of the Cadbury Report?
The report issued by the Committee on the Financial Aspects of Corporate
Governance chaired by Sir Adrian Cadbury. The committee was set up in May 1991 in
response to concerns about the perceived level of low confidence both in financial reporting
and the ability of auditors to provide safeguards.
What is the importance of Cadbury Report in corporate governance?
Cadbury Rules are guidelines or recommendations on corporate governance that were
specified by the UKs Cadbury Committee. These rules were submitted in 1992 with the aim
of raising the standards of corporate governance as well as financial reporting and
auditing in organizations.
What are Cadbury Report and its recommendations?
In December 1992, the Cadbury Committee published their Code of Best Practice.
The recommendations, which largely reflected perceived best practice at the time,
included separating the roles of CEO and chairman, having a minimum of three non‐
executive directors on the board and the formulation of audit committees.
What is an Audit Committee?
An audit committee is a body that takes care of a company‟s financial reporting with respect
to the internal controls in place to ensure accuracy. This committee also monitors a
company‟s overall processes and ensures they comply with the standards, guidelines, and
industry regulations.

20
Objectives of the Audit Committee
Audit committee relies on management to run the daily operations of the business. The
Board‟s role is better described as oversight or monitoring, rather than execution.
Objectives of the audit committee typically include-
(a) Overseeing: Overseeing the financial reporting and disclosure process, hiring,
performance and independence of the external auditors, the performance of the internal
audit function.
(b) Monitoring: Audit committee monitors choice of accounting policies and principles and
the internal control process.
(c) Discussing risk management policies and practices with management: The audit
committee shall –
 Monitor the financial reporting process,
 Monitor the effectiveness of the company‟s internal control, internal audit where
applicable, and risk management systems;
 Monitor the statutory audit of the annual and consolidated accounts;
 Review and monitor the independence of the statutory auditor or audit firm, and in
particular the provision of additional services to the audited entity.
(d) Oversight of financial reporting and accounting: Audit committees typically review
financial statements quarterly and annually in public companies. In addition, members will
often discuss complex accounting estimates and judgments made by management and the
implementation of new accounting principles or regulations.
(e) Monitoring the external auditor: Audit committees typically approve the selection of
the external auditor. The external auditor reviews the entity‟s financial statements quarterly
and issues an opinion on the accuracy of the entity‟s annual financial statements.
(f) Assessing regulatory compliance: Audit committees discuss litigation or regulatory
compliance risks with management, generally via briefings or reports from the General
Counsel, the top lawyer in the entity.
(g) Operating risk management: The policies and practices used by the entity to identify,
prioritize, and respond to the risks (or opportunities) are typically discussed with the audit
committee. Audit committee involvement in non-financial risk topics varies significantly by
an entity.

21