Letter to BS: IL&FS case has brought into focus effectiveness of boards

The recent Infrastructure Leasing & Financial Services case has again brought into focus the effectiveness of the company boards, especially the role of independent and nominee directors. While the agencies involved in improving the legal framework for better accountability are constantly making changes to the law, it is time a radical move is made. All board meetings should be videographed and an archive is maintained by the companies for at least a few years. The government or Securities and Exchange Board of India should have a team that goes through these at random to assess the quality of discussions. The fact such scrutiny is happening will enhance the quality of discussions. As a start the annual board meeting where the audited results are discussed should be compulsorily taken on video.

V Ranganathan  Chennai
 
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