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INDIAN PERSPECTIVE
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Meaning
Meaning of Corporate Governance can be split up as
follows:-
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Principles Players of Corporate
Governance
Board of Directors
Management
Banks and lenders
Customers
Shareholders
Employees Environment &
the community at large
Regulators
Suppliers
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Features of GoodCorporate
Governance
4. Fairness 8. Self-Evaluation
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India’s Journey of Corporate
Governance
Base of Governance- Kautilya’s Arthashstra
“In the happiness of the subject lies the benefit of the king, and
in what is beneficial to the subjects is his own benefit”.
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CORPORATE GOVERNANCE
COMMITTEES IN INDIA
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Confederation of IndianIndustries
Code (1997)
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Recommendations
1.No need for German style two-tiered board.
5.Commission not exceeding 1%(3%) of net profits for a company with (out) a
MD. 11
6. Attendance record of directors should be made explicit at the time of
reappointment; less than 50%no re-appointment.
7. Key information that must be reported to and placed before the board .
8. Listed companies with turnover over Rs. 100 crores or paid-up capital of Rs.
20 crores should have an auditcommittee.
12. Companies that default on fixed deposits should not be permitted to:-
3.Non-executive Chairman should have an office and be paid for job related
expenses.
5. Audit Committee:
Minimum 3 members, all non-executive.
Chairman should attend AGM.
Should meet at least thrice a year.
Act as bridge between Board, Sta15tutoryAuditors & Internal Auditors
6. Remuneration Committee (at least 3 directors, all
non-executive and be chaired by an independent director).
8. Board Meetings
4 board meetings a year with a maximum gap of 4 months
between any 2meetings.
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Naresh Chandra Committee Report
(2002)
Concentrated on 3 mainaspects:-
1.The auditor- company relationship.
2. Role of StatutoryAuditors.
3. Independent Directors-role, remuneration & training.
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Recommendations
1. Disqualifications of AuditAssignments.
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Recommendations
1. Training of boardmembers.
4. The Board should be informed every quarter of business risk and risk
management strategies.
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GUESSWHO??...
SATYENDRADUBEY
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Naresh Chandra Committee Report
(2009)
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Recommendations
1. Nomination Committee.
4. Remuneration Committee.
5. Audit Committee.
9. Shareholder Activism
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