Financial Daily from THE HINDU group of publications
Sunday, Jan 23, 2005
Financial Daily from THE HINDU group of publications Sunday, Jan 23, 2005 |
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Events Corporate - Corporate Governance India Inc's response to corporate governance tardy: Chidambaram Our Bureau
New Delhi , Jan. 22 THE Union Finance Minister, Mr P. Chidambaram, has expressed concern over the lack of seriousness on the part of corporate India in following the principles of corporate governance. "I am dismayed at the tardy response of Indian companies to corporate governance requirements," the Finance Minister said in his valedictory address at a summit on `Indian CEOs - Competencies for Success' here on Saturday. Pointing out that many companies have not appointed "truly independent directors" or have got an audit or a remuneration committee, the Minister said these companies resisted change. Further, there has been opposition to the proposal to have 50 per cent of independent directors on a company's board. He also expressed concern over resistance by a section of the Indian corporate sector on training of independent directors and appointment of women on the boards of companies. "If I ask CEOs what is the distance they have travelled in the corporate governance milestone of 1-10, not many of them will reply that they have crossed even three," Mr Chidambaram said. He said the definition of stakeholders had gone beyond the traditional boundaries of land and capital. Every CEO must be conscious of all stakeholders, including consumers and those engaged in the supply chain, Mr Chidambaram said. The Finance Minister asked Indian companies to take globalisation seriously as technology had enabled everyone to be familiar with the latest business models in any part of the world.
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