How would you identify the events having major bearing on affairs of the Company during secretarial audit ?

CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · December 2022
How would you identify the events having major bearing on affairs of the Company during secretarial audit ?

Answer & Explanation:

The Auditor should identify and report all events/actions having major bearing on the Company's affairs/ Governance in pursuance of the applicable laws, rules, regulations, guidelines, standards, etc. all information which have bearing on performance/operation of the company or is price sensitive or affect payment of interest or dividend of non-convertible preference shares or redemption of non-convertible debt securities or redeemable preference shares etc. An event/action may be considered as having major bearing on Company's affairs includes the following situations: a) Events/actions altering the Incorporation documents of the Company b) Changes in the capital structure of the company. c) Change in the affairs/management of the company. d) Change in the licensing or permission for the business operations of the company. e) Capacity expansion and utilization of the company. f) Sale/Disposing of the substantial assets of the company. g) Entering in to Joint ventures agreements etc.

Topics: Secretarial Audit

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