Corporate Governance

The booklet discusses the functions of nominee directors, the items to be brought before the board, voting, the statutory liabilities of a director, and the reporting by a nominee director. The reporting aspect is extremely detailed and gives an exhaustive list of items which should be placed before the board. These include, among other things, monthly reports of profit and loss etc. Even the format for monthly reports on commercial operations is given in the booklet. This includes total sales, product-wise, unit sales realisation, particulars of large receipts and payments etc. If all nominee directors followed the guidelines in the booklet, there is little chance of the company keeping back information from them. The problem does not seem to be drawing up the guidelines, but in ensuring that they are followed.