MY VIEWS IN TIMES OF INDIA ON CORPORATE GOVERNANCE

Comments of MILAN K SINHA (PATNA) in  
The Times Of India dt.05.01.13 

Your comment on the article ''Recast corporate governance rules: Sebi'' is now displayed on timesofindia.com.

''The proposal of SEBI is a welcome step in the right direction. After the Satyam episode, much water has flowed down our rivers but the desired changes in the complexion of corporate governance is yet to be effected in Indian Corporate entities due to many undesirable factors including lack of political will on the part of the policy makers at Govt. level and the implementing machinery at ground level alike.Segregating the post of CMD into Chairman on one hand and the Managing Director on the other is a necessary step to improve the transparency, objectivity and finally efficacy of corporate governance and so is the proposed norm for selection of independent directors in the board of a company. It is no denying the fact that in most of the companies, both in private as well as in public sector, the directors, barring a few, act as a yes man of CMD or the defacto master ( may be the Govt. in many cases) of the company. As such, the board meetings turn out to be a necessary ritual to create documents for compliance of the laid down norms and to incur wasteful expenditure to oblige the directors to elicit undue favour to pass the board resolutions as per the whims and fancies of a few having vested interest in the company. Provision of training and performance evaluation of independent directors is another good input for better corporate governance. Undoubtedly, the proposed measures, if accepted and implemented sincerely and monitored seriously, would go a long way not only in restoring confidence of existing small investors in Indian equity market but also prompt lacs of new small investors to join the fold for the good of listed companies in particular and the economy in general.''

             Will meet again with Open Mind. All the Best.

P.S:To view full story, pl. click on  Link :
                                                               
#  Do visit my site : milanksinha.com