Corporate governance standards set for a big improvement
SC's direction has established that independent directors' job has become much more onerous than before
Enhancing of regulations increases the compliance cost. This could be quite significant (relative to profit) for smaller listed companies
Streamlining existing system will aid corporate governance
In March, the Irdai issued a stewardship code for companies in its ambit
Corporate governance revolves around balancing the interests of different stakeholders
Q&A with Tadashi Kageyama, regional managing director and head of Kroll's Asia operations
Institutional investors, minority shareholders, employees - all these constituents should be given the right to choose at least one independent director each
The corporate governance committee's proposal to put in place a common stewardship code may compel Life Insurance Corporation of India (LIC) and top mutual funds to play a more active role in corporate governance. At present, there is no specific provision for a 'stewardship code' under the Sebi regulations. For mutual funds, certain stewardship principles such as on voting and conflict of interest have been adopted. Insurance regulator Irdai in March 2017 issued a stewardship code for insurance companies in India."Over the years, disclosures on the voting patterns of mutual funds have gradually improved and insurance companies are now likely to come under increasing pressure to start voting on shareholder resolutions," said Shriram Subramanian, founder and managing director of InGovern Research Services, a proxy advisory firm."The code will make it a formal mandate for institutional investors to play a stewardship role, rather than remain silent spectators with respect to the ...
In most family businesses, power is tilted towards controlling shareholder or management. So, the board is ineffective. This can't change soon
Sebi should swiftly implement Kotak panel suggestions
Also suggests that at least half of board members should be independent directors
Employees, who are unable to acquire new skills, are losing jobs
The Infosys episode shows how tricky it is to toe the line of corporate governance in India
The Birla committee suggested several mandatory and non-mandatory measures
Before the institution of the National Company Law Tribunal, disputes were settled by the Company Law Board
It reflects that the regulatory frameworks in emerging market jurisdictions are generally aligned with the recommendations of the OECD Principles