Non-disparagement pact: Transparency, corporate governance norms may be hit

 

Shriram Subramanian, managing director, InGovern, does not feel that such pacts run afoul of corporate governance practices. “A non-disparagement clause restricts individuals from taking any action that negatively impacts an organisation, its reputation, products, services, management or employees,” says Subramanian. A non-disparagement clause does not prevent an ex-director from discussing issues with regulators if there is any regulatory investigation, he adds.

 

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