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Companies Bill aims at good governance: Moily

Aug 22, 2012

India's Corporate Affairs and Power Minister M Veerappa Moily said there is a need to strengthen corporate governance and inculcate the culture of transparency, accountability and responsibility amongst Indian corporates. He was speaking on the 23rd annual day of the Institute of Directors (IOD) in New Delhi.

Highlighting the role of best practices in the corporate sector, Moily said the basic premise of the new Companies Bill is good governance. “The Indian economic scenario is becoming volatile as business vehicles are expanding and growing into global entities. India has become one of the prominent emerging nations to adopt international trends in corporate governance,” Moily said.

Dr Bhaskar Chatterjee, Director-General and CEO of the Indian Institute of Corporate Affairs, talking about the need for clean governance wondered why top ranking executives continue to draw high salaries even as the performance of their companies’ worsens with each passing day.

Speaking on the occasion, Anu Aga, MP and Director, Thermax India, said corporate governance represents a transparent, moral, ethical and valuable asset to manage the affairs of the company. “Corporate governance should aim at increasing shareholder value keeping in view the interests of other stakeholders. If corporate governance is not genuinely embraced by a company, we will end up having many Enrons and Satyams,” she said.

“Apart from the ethical aspect of being accountable to shareholders and stakeholders, companies are urged to follow good governance because it is a business imperative. Transparency has a major competitive advantage as it helps in winning the investors’ trust and confidence. The nexus between corrupt politicians and corporates is not in the interest of the corporate world. Fraudulent and the criminal activities of a few corporates are tarnishing the credibility of the entire business establishment in this country,” Agha added.

Moily presented the Golden Peacock HR Excellence Awards for the year 2012. Prominent awardees included Bangalore Traffic Police, CMC Limited, Birla Sunlife Insurance, Reliance Industries’ Jamnagar manufacturing division, Steel Authority of India’s Bokaro Steel Plant (BSL).

The Golden Peacock HR Excellence Award recognises accomplishments for the human resources fraternity in India, and is bestowed upon organisations that have achieved overall effectiveness in their HR and people management practices.

IOD also announced distinguished fellowship awards in recognition of commendable performance in managing companies. Prominent winners of the fellowship awards include Arun Maira, Member of India’s Planning Commission; Anu Aga Member of Parliament and director Thermax India; Dr Bhaskar Chatterjee, Director General and CEO of Indian Institute of Corporate Affairs and Sudhir Vasudeva, Chairman and Managing Director of India’s Oil and Natural Gas Corporation (ONGC).

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