You are the Company Secretary of Popular Ltd. The Board has entrusted you with the task of suggesting a comprehensive investor protection mechanism. Prepare a note for the Board highlighting salient points in the light o

To, The Board of Directors Popular Ltd. The Justice Dhanuka Committee made a few suggestions / recommendations indicating the nature of powers, duties and obligations to be conferred on the regulatory body for giving better protection to investors whose interests are in stake. A list of such provisions is particularly indicated hereinafter. Power of making enquiry and investigation. Thus, the power to issue summons and record statements of individuals, suspected of fraud and malpractices - power to search the premises, to seize the records - power to appoint a Chartered Accountant or any other officer to take inspection of the records of the company concerned. Power to take-over the management of the entity concerned for a limited duration. Power to appoint Chairman or additional directors as Government nominees or as SEBI nominees with special obligations to protect the interest of the investors and make report to the authorities including authority to perform Bank Accounts. Power to make inventory inspection of the assets of the company. Appointment of receiver or freeze assets of the company including Bank Accounts where the regulatory authority has reason that the company is indulging in activities prejudicial in the interest of the investors or is dealing with the assets in a manner prejudicial or manipulating in activities in accordance with law. Power to prosecute the manipulators and persons who are prima - facie suspected fraud after investigation. Power to issue directions including directives in respect of freezing the assets of the company and such other directions as are deemed necessary in the interest of the investors. In case the company or the unit is found insolvent or the interests of the investors are in jeopardy or it is prima facie deemed just and equitable to seek winding up of such companies to make necessary applications for winding up of the company. Sd/- Ms. A Company Secretary