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A Talk by Shri K. K. Nohria, Chairman, Crompton Greaves Ltd. addressed the gathering on the occasion of the 15th All India Management Schools' (AIMS) meet hosted by XIMB, Bhubaneswar. The venue was the brand new auditorium and the audience included various dignitaries including some of the directors of the top B-schools from all over India. The topic of discussion was "Corporate Governance" and as a speaker he had spar with the likes of Dr. Santrupt Misra, Director - Corporate HRD, Aditya Birla Group and Shri C. Venkatramana, Chairman and Managing Director, NALCO. Mr. Nohria eloquently described in specific points various issues pertaining to corporate governance like vision, implementation, legalities, benefits and obstacles. His vision of corporate governance was summed up as performance with equity and transparency with due importance to society. Also shareholder interest has to be kept in mind while creating prosperity for one and all in a socially responsible manner. He also elaborated that the certain factors were important to effectively implement this vision like quality of leadership and management, effective organization with talented and focused people and flawless execution with passion. These require the board and management to be aware of trends; take effective strategy decisions and stay away from complacency. Mr. Nohria focused on the importance of boards of directors in respect to corporate governance as he felt that they were the key to its effective implementation. He highlighted important issues on which a board of directors could be the watchdog to implement corporate governance. He emphasized the importance of vigilance in respect to the SEBI guidelines regarding aspects like compulsory independent directors and fixing their minimum ratio to company executives on the board. He also mentioned that guidelines need to be formulated regarding their remuneration and privilege information access. He concluded by asking whether corporate governance made sense unless there where effective monitors like independent directors who can help by attracting better talent, maintain adherence to legal guidelines, help in understanding of industry factors and provide a check on executive directors. Contributed by - |
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