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Centre moots corporate governance policy

by India CSR Network
11 years ago
in More

Corporate GovernanceBANGALORE: The Union government is planning to introduce a corporate governance policy, with the aim of raising the administrative standards of companies in the private sector.

The corporate affairs ministry has mooted the idea. If all goes well, the first such policy will come into existence in the next six months, Union minister for corporate affairs M Veerappa Moily said today.

“We have already issued a number of guidelines to set the corporate ethics and standards,” he told. “We are also going to have a comprehensive national corporate governance policy, just like the National Competition Policy, in the next six months.”

The ministry is also planning the constitution of an expert committee that would prepare a draft policy framework after studying best practices in corporate governance in other countries. Ahead of setting up the panel, he would consult various stakeholders, including industry.

“I am taking into consideration the ground realities and what all would be suitable for the country,” Moily revealed. “However, we will also take lessons from countries such as South Africa, the US and the UK. There, they have well-laid corporate governance standards. We will take a similar holistic approach.” So, would certain controversial topics like separating the roles of the chairman and CEO and the role of independent directors be part of the policy?

“I don’t want to spell out the details. This is absolutely a new initiative that I have conceived,” he noted. “I will take it forward after due consultations. And then will be able to give the details.”

(Business Standard)

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