Corporate Governance in India - Inputs on Issues
Good Corporate Governance is critical for sustained growth of the economy and employment. Having an independent board, independent auditor, following accounting norms, or having a business ethics department are some key elements of good corporate governance.
We would like to seek your inputs on all the prevailing issues when it comes to corporate governance.
Once we understand issues, we will work the next steps with the objective of putting a whitepaper together for the Ministry of Finance, SEBI, key industry bodies and other stakeholders so actions can be taken to improve corporate governance in our companies.
We look forward to your inputs!
Rajendra Pratap Gupta more
Good corporate governance and ethical business practices are enough to control every evil more
Now listed and unlisted corporate bodies stand in totally different footing, be it in process, procedures, regulations, rules or the laws.LikeSEBI, independent body is required to regulate the affairs of the corporate., the customers, employees, and the dealers of all class.Financial audit,, control, distribution, all are to be under the supervision of the regulator independent body. For this proper legislation also is needed.Check on black money also will be made then. more
1. The role of Directors on the Board though fully authoritative, their limited liability supporting the roots of ill-business activities in addition to their selfish goals . 2. A planned division sharing between and from their Ancillary and sister concerns is diverting volume of Profits , Taxation , and in addition , the distribution of profits shares to their co-investors by way of dividends . 3. The issue of scrap sales , write-off under the provision bad and doubtful debts also being utilized for selfish purposes of Directors in some businesses. 4. Silent and hidden verbal contracts of working directors with Raw material / Chemical suppliers and the money back arrangement with some Debtors on the pretext of Cash Discount / period of credit also are the backing profit places. 5. These in addition to my earlier precise points are really swallowing away the PROFIT SHARES THROUGH DIVIDENDS TO THE INNOCENT SHARE HOLDERS AND IN ISSUES OF UP AND DOWNS OF BUSINESS RESULTING BITTER FLUCTUATIONS ON SHARE VALUE AND IN THE ISSUES OF ESCAPE OR CLOSING DOWN THE UNITS SHOWING HEAVY LOSSES OR MULTI BAD DEBTS , AGAIN , THE INNOCENT SHARE HOLDERS ARE BEING AT ABSOLUTE LOSS LOOSING EVEN THEIR INVESTED VALUES. 6. The Registrar of Companies , though the comprehensive authority for the proper , perfect and fair business by the Private and public Companies , particularly ignoring the interests of the Share investors /owners of those companies resulting deceit of public only for which the Registrar of Companies was incorporated . more
Company board is dominated by families or their cronies in private sector. Similarly in public sector it is dominated by "netas, net working people or good talkers". So most of the Indian corporate find it difficult to face the real competition and keep on looking for loopholes in govt policies, concessions or milking the bank by various means. So there is a need to have effective rules for board configuration, its effectiveness and outcome. SEBI, Company law board, Auditors are all there for this who need to be " activated" the way Seshan activated Election commission( with in same rules ). Corporate governance is also a self driven one. Many companies like Infosys have set examples not only for India but for the world. Infosys was not pushed by anybody but by its visionary owners. Govt should identify such companies and award them, recognize them so that others are inspired to follow it. Top level leaders in government and Bureaucracy should set examples which fortunately Modiji s govt is doing now. more