ISB Holds a Conference on Corporate Governance in Emerging Markets

ISB Holds a Conference on Corporate Governance in Emerging Markets

He elaborated on recent initiatives Tata Sons, Murugappa Group and the Dabur Group, which were all family businesses. Issues in family-owned businesses were overlap in ownership and control, opaqueness in governance, putting family before business, independence of independent directors, audit committees and external auditors, and succession planning, among others.

He suggested the dismantling of pyramidal structure, empowerment of boards, mandatory establishment of nomination and remuneration committees, introduction of Corporate Governance ratings, and meaningful related party disclosures.

Madan Menon, Co-CEO, Barclays Bank, India, said that family governance, meritocracy, succession planning, external advisory boards / independent directors, lack of conflicts of interest, family harmony and professionalisation directly impacted the success of family owned businesses.

Rangarajan K. Sundaram, (New York University) concluded the session by saying that focusing on regulators, stakeholders and investors was the key to successfully implementing Corporate Governance in family owned businesses.

And the quote for the day? It certainly had to belong to Damodaran, given his penchant for giving quotable quotes. Answering an audience query on the need for quarterly reports when half-yearly ones would be more convenient, he said, "Just as the title of a film Quayamat Se Quayamat Tak, we have CEOs of companies who live quarter to quarter," He proceeded to clarify that as, "what I am sharing with you is my personal view on the subject, which is not bound by my office. If nothing else, at least the stress levels of CEOs could be brought sown with half-yearly reporting - I've heard from friends in the medical profession who say that stress levels have increased with quarterly disclosures!"

Concluded.

Click here to post your views/ comments/ experience on this...

Contributed by -
Ms. Bhuvana Ramalingam,
Director - Communications,
Indian School of Business, Hyderabad.

MBA Alumni \| MBA Students \| MBA Aspirants \| MBA Forums