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Policy Drafting – Building the Right Framework for Your Business

What is Policy Drafting?

Policies are the written framework of rules, principles, and procedures that guide how a company functions. They ensure consistency, compliance, and accountability across the organization. A well-drafted policy protects the company, employees, and stakeholders by providing clarity in decision-making and conduct.

Who Needs This?

  • Companies & LLPs – to comply with Companies Act, SEBI, FEMA, Labour laws, etc.

  • Startups & SMEs – to standardize internal processes and build governance credibility.

  • Listed Companies – mandated to maintain several policies under SEBI (LODR) and Companies Act.

  • Organizations seeking funding or IPO – strong policies increase investor confidence.

Why It Matters

  • Ensures legal & regulatory compliance.

  • Prevents disputes by setting clear guidelines.

  • Builds corporate governance credibility.

  • Improves employee confidence and accountability.

  • Essential for due diligence, audits, and investor checks.

Key Policies We Draft

  • Statutory / Mandatory Policies

    • CSR Policy (u/s 135, Companies Act).

    • POSH Policy (Prevention of Sexual Harassment).

    • Vigil Mechanism / Whistleblower Policy.

    • Related Party Transactions (RPT) Policy.

    • Insider Trading & Code of Conduct (for listed companies).

    • Risk Management Policy.

  • HR & Internal Policies

    • Leave & Attendance Policy.

    • Employee Code of Conduct.

    • Gratuity & Bonus Policy.

    • Work from Home / Hybrid Work Policy.

    • Payroll & Reimbursement Policy.

  • Finance & Operational Policies

    • Internal Financial Controls (IFC) Policy.

    • Expense Management & Approval Policy.

    • Procurement / Vendor Management Policy.

    • Data Protection & IT Security Policy.

(You can showcase these in groups: Statutory | HR | Finance/Operations)

Process of Policy Drafting

  1. Assessment – Understand business structure and compliance requirements.

  2. Drafting – Prepare tailored policies as per law and company objectives.

  3. Review & Customization – Align with company practices and industry best standards.

  4. Approval & Implementation – Board/Management adoption.

  5. Training & Awareness – Orient employees on key policies.

How Law to Corporate (LTC) Helps

  • Drafting legally compliant and practical policies.

  • Ensuring alignment with Companies Act, SEBI, FEMA, Labour & Tax laws.

  • Providing customized handbooks/manuals for employees.

  • Regular policy reviews & updates to stay compliant with new regulations.