a) Dr M Veerappa Moily, Hon’ble Minister of Corporate Affairs (MCA) and Power announced that a state-of-the-art legislation on company law would be presented in the Winter Session of the Parliament. Speaking at the CII’s 8th International Corporate Governance Summit here in Mumbai, the Minister assured that the new Companies Bill would be facilitative and the best in the world. “Good corporate governance is not an option, a must for sustenance of society” the Minister further added explaining that good corporate governance cannot be achieved by having more regulations but can be ushered in by corporates assuming a larger and proactive role. “My thrust is upon fostering a corporate culture based on universally accepted values of good governance”.
Mr Moily also assured that the convergence with International Financial Reporting Standards (IFRS) is expected to be implemented by April 2013.
b) Speaking earlier, Mr Prashant Saran, Whole Time Member, SEBI stressed on encouraging out-of-box thinking on corporate governance. He observed that it is time we examine the corporate form of business organizations itself and evolve new paradigms in reporting and communication.
c) On the occasion of the Summit, Mr Adi Godrej, President, CII presented ‘Guiding Principles of Corporate Governance’ formulated by the MCA Committee chaired by him. The report advocates some practical suggestions on strengthening the actual performance of Indian corporate governance within the existing legal framework. The Principles would help transform corporate governance from a ‘tick-box’ exercise to an actual roadmap.
Mr Adi Godrej stressed the need for continual efforts in designing and implementation of corporate governance practices across Indian industry.
d) Addressing the session, Mr R Gopalakrishnan, Chairman, CII National Council on Corporate Governance & Regulatory Affairs stressed on two points - the need to look beyond corporate governance and to look at corporate governance itself. He viewed that we are a part of the larger global system, and strengthening corporate governance is a pre-requisite for strengthening public confidence in business and economy. He stated, “A deeper understanding of ever evolving corporate governance scope is critical. Today it is more vital than ever to encourage and imbibe corporate culture.”
Mr Gopalakrishnan brought home the point that with renewed focus on legislation, companies need to have quality as well as cost audit and this demands building harmonious relations with all the stakeholders. He applauded CII for representing industry’s point of view and mediating between the industry and the regulator. He also applauded SEBI for the steps taken to bring in retail investors, enhancing financial deepening by encouraging innovative products and intermediaries.
e) The Summit marked the release of CII – Institutional Investor Advisory Services (IIAS) Survey: ‘Institutional Investors: Driving Force for Good Governance’. The survey outlines how the institutional investors can be the vital value providers to business and economy apart from being the investors of capital. It reveals that majority of investors deem corporate governance as “very important” in their assessment of target companies. It also reflects on the investor perceptions on the effectiveness of corporate governance mechanism in India and reveals that Clause 49 of Listing Agreement on Corporate Governance needs to have more teeth in redressing corporate governance issues.
f) In his remarks, Mr Chandrajit Banerjee, Director General, CII asserted, “CII’s 8th International Corporate Governance Summit is a testimony to the industry’s commitment to corporate governance.” He highlighted that CII has been the torch bearer in promoting corporate governance across Indian industry pointing to the CII corporate Governance Practices Code, 1998, CII Task Force Report on corporate Governance, 2009 and CII’s association with National Foundation for Corporate Governance (NFCG).
The growing reach of regulations, aspirational best practices and growing demands of stakeholders is contributing to the continued evolution of the subject of corporate governance worldwide. Corporate events coupled with dynamic shifts in the economic and business cycles are leading to newer and innovative regulatory responses, theories and facets. Not only this, they are also leading to an increase in the domain of what constitutes governance in current times. Different countries, jurisdictions, companies and practices are contributing to this overall advancement – thanks to information technology which now enables news to travel faster and reach more people than ever before. The international nature of business and growing collaboration is leading to countries and Corporates to learn from each other’s experience with an endeavor to raise overall standards. Against this background, Confederation of Indian Industry (CII) organized the 8th Corporate Governance Summit with a view to map latest global and domestic trends, focus on correlation between competitiveness, governance and citizenship and discuss key issues for Corporates and Directors in 2012.
The aforesaid 8th CII Corporate Governance Summit was held on 18 September, 2012 at Mumbai.
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