Governance code impact: 40% of NSE-listed firms will have to split CMD post

256 firms have five or less members on their boards

The proposed corporate governance code framework is expected to have a significant impact, forcing companies, including several blue-chip names, to reconstitute their boards, rope in more directors, and seek shareholders’ blessings on big pay packets for top executives and royalty payouts.

Currently, nearly 40 per cent of 1,670 companies listed on the National Stock Exchange (NSE) have the same individual acting as chairperson and managing director (CMD). Of these, 144 belong to the top 500 company index, and 14 are part of the benchmark Nifty 50 index. Some of the marquee names on the list include Mukesh Ambani of Reliance