Corporate Governanace

DESIRABLE CORPORATE GOVERNANCE

A CODE

Confederation of Indian Industry

www.ciionline.org

DESIRABLE CORPORATE GOVERNANCE

A CODE

FOREWORD

In 1996,CII took a special initiative on Corporate Governance – the first institutional initiative in Indian industry. The objective was to develop and promote a code for Corporate Governance to be adopted and followed by Indian companies, be these in the Private Sector, the Public Sector, Banks or Financial Institutions, all of which are corporate entities. This initiative by CII flowed from public concerns regarding the protection of investor interest, especially the small investor; the promotion of transparency within business and industry; the need to move towards international standards in terms of disclosure of information by the corporate sector and, through all of this, to develop a high level of public confidence in business and industry. A National Task Force set up with Mr. Rahul Bajaj , Past President ,CII and Chairman & Managing Director, Bajaj Auto Limited, as the Chairman included membership from industry, the legal profession, media and academia. This Task Force presented the draft guidelines and the code of Corporate Governance in April 1997 at the National Conference and Annual Session of CII. This draft was then publicly debated in workshops and Seminars and a number of suggestions were received for the consideration of the Task Force. Reviewing, these suggestions, and the development, which have taken, place in India and abroad over the past year, the Task Force has finalised the Desirable Corporate Governance Code. CII has the pleasure in presenting this Code in this document for information, for understanding and for implementation of Indian business and industry. CII would like to acknowledge, with deep gratitude, the role and leadership provided by the Task Force Chairman, Mr. Rahul Bajaj, and the economist in the group, Dr. Omkar Goswami, who undertook a great deal of research and too special...