GAIL sets up Ethics Committee of the Board

GAIL (India) Limited has taken a major step in Corporate Governance by constituting an Ethics Committee of the Board. The Ethics Committee will deal with all aspects of ethics in the Company and suitably evolve its procedures. Ethics Committee shall work as conscience keeper and submit to the Board any recommendation for best corporate governance in the Company. The move to set up the Ethics Committee of the Board in GAIL has been initiated by Dr. U. D. Choubey, Chairman and Managing Director. 

The Ethics Committee will consist of four Independent Directors and a Government Nominee Director on the Board of GAIL. Neither the CMD nor any of the Functional Directors would be members of the Ethics Committee. The recommendations of the Ethics Committee shall be put up to the Board for deliberations and taking a final view. Some of the aspects to by covered by the Ethics Committee include no conflict of interest, fair play, integrity and accountability, protection of corporate interest and its assets, transparency in disclosures e.g. revenue, expenses and investments etc., legal compliances, propriety and confidentiality.

 

The step has been taken to strengthen the corporate governance in the conduct of business and to cater to the need of stricter code of ethics.

GAIL already has an Audit Committee in place, in compliance with the provisions of the Listing Agreement. The Code of Conduct for Board Members and Senior Management personnel is already in place. For GAIL, which has been a pioneer in its business areas and business processes such as natural gas transmission, e-payment systems and MoU with Transparency International India, this is yet another milestone in Corporate Governance, specially keeping in view the recent occurrence in this area.