Company Law and regulations lay down a number of specific disclosure requirements in financial statement of companies. Not included in these are disclosure of directors meetings expenses, often pretty huge. Cannot be ruled out that the more hefty payments to its directors by a company be, the more likely oversights may be on the part of directors, more so in the case of nominee directors. Also in deference to the concept of 'disclosure and fair play', it may be advisable to have disclosure of directors related expenditure in financial statements of companies etc. Directors' related expenses, in terms of transport, hotel charges, entertainments, should feature in this classification. Also because these are 'interested party transactions'.
Government officials, from quasi government organizations as well, are nominees on boards of companies and boards like set-ups. Government nominations are also made to academia, business and professional bodies. They are also paid in the name of meetings attendance fee. Despite the fact that they spend the time here out of time paid for by their employer.
Being on a University Syndicate or Senate or on the Council of a professional body is an honour for which lot many 'have to dos' are found keen to spend time and money. Government should not wink at doling out favours to members of the boards of academia or to nominees on Councils of professional bodies.
To meet out of pocket expenses may be paid around Rs 2,000 when it is same city meetings. Up to Rs 5,000 may be allowed when travel outside the city is involved.
The proposed disclosure requirement could go to serve as watch dog needed in the corporate culture.
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