Companies Act 2013
Under the Companies Act 2013, this is the minimum number of board meetings a company must hold every year.
4
In Agency Theory, the "Principal" refers to this group of people who own the company.
Shareholders
The practice of manipulating financial statements to make a company's performance look better than it is.
Window Dressing
An employee who reports organizational misconduct to the public or higher authorities.
Whistleblower
This 1999 committee in India was the first to formally recommend a code for corporate governance.
Kumar Mangalam Birla Committee
This specific type of director must be appointed if a listed company has a paid-up share capital of ₹100 crore or more.
Woman Director
These are the costs incurred by the Principal to limit the divergence of the Agent's interests (e.g., audit fees).
Monitoring Costs
Trading a public company's stock based on material, non-public information.
Insider Trading
This term refers to the "unwritten" rules and values that dictate how employees behave in an organization.
Corporate Culture
This term describes a company that is controlled by a single family across multiple generations.
Family-Owned Business
The "NFRA" was constituted in 2018 as an independent regulator for enforcement of auditing standards. What does NFRA stand for?
National Financial Reporting Authority
his term describes when one party in a transaction has more or better information than the other.
Information Asymmetry
The "Triple Bottom Line" accounts for Profit, People, and this third "P."
Planet
The unethical practice of hiring relatives or friends regardless of their merit.
Nepotism
This Japanese term refers to a network of businesses with interlocking shareholdings and long-term trading relationships.
Keiretsu
This committee is mandatory for companies with a net worth of ₹500 crore or more to oversee social responsibility initiatives.
CSR Committee
The "Residual Loss" in agency theory represents the loss in utility because the Agent's decisions do not fully maximize the Principal's ______.
Wealth/Value
An independent assessment of a company's internal controls and financial records.
External Audit
A situation where an individual’s private interests interfere with their professional duties.
Conflict of Interest
This term refers to the cost of a manager spending time on activities that benefit their own career rather than the firm.
Managerial Myopia
According to SEBI (LODR) regulations, the Top 1,000 listed entities must formulate this report to disclose their ESG performance.
BRSR - Business Responsibility and Sustainability Report
Costs incurred by the Agent (Manager) to demonstrate to the Principal that they are acting in the Principal's best interest.
Bonding Costs
This ratio compares the salary of the CEO to the salary of the median employee.
Pay Ratio
This document outlines the primary values and ethical rules a company expects its employees to follow.
Code of Conduct
This term describes a stock market where ownership is spread across thousands of small investors rather than a few big ones.
Dispersed Ownership