Exchange pf information between promoter nad director with reference to infosys saga

Abstract

Exchange of information is very important factor for the governance of any organization but in recent time it becomes the point of dispute in organization like TATA and INFOSYS because opt-out promoter dissatisfied with the current information exchange mechanism. This paper tries to understand the current equal treatment information exchange mechanism and the problem of equal treatment. Paper substantially covered by two topics firstly the dispute in INFOSYS between promoter Mr. Murthy and Mr.Sikka because of Infosys insider trading policy, disclosure and transparency norms, composition of BOD and other financial aspect, secondly paper discusses about the report of the committee on corporate governance which is based on evolutionary rather than revolutionary approach, it deals with the problem of information exchange mechanism by providing various suggestion such as information exchange agreement which will provide information to the party of the agreement with special condition attached to it, report also tries to improve transparency in the organization with various suggestion. But if information exchange mechanism is governed only by a single agreement then threat of centralization of power will arise and it will lead to evil consequences.