Clause 49
Clause 49 of the Listing Agreement for the Indian stock exchange, effective December 31, 2005, was formulated to improve corporate governance in all listed companies. == Background == In corporate hierarchy two types of managements are envisaged: i) companies managed by Board of Directors; and ii) those by a Managing Director, whole-time director or manager subject to the control and guidance of the Board of Directors i.e., he is liable to the Board of Directors and the function of the corporate.