Corporate Governance

All this is fine and welcome. But the problem is that this brings into sharp focus the governments lethargy on another front.

All the changes, which the code of corporate governance is expected to incorporate, should have been part of the revised Companies Act. But when will the revised Companies Act come into force? The finance ministers promise that the revised Act would be in place before the end of the financial year does not seem to be getting fulfilled. The important point the government should not forget is that corporate governance can hardly be a substitute for the Companies Act.