‘Policy on corporate governance in 60 days’

The government is set to come out with the national policy on corporate governance within the next 60 days, corporate affairs minister Veerappa Moily said on Tuesday. A government appointed panel, headed by industrialist Adi Godrej, has already submitted its recommendations to the ministry on the matter.

"We are evolving a national corporate governance policy. It will come within two months," Moily said while participating in the session on 'Value Creation with Good Corporate Governance' organised by industry body CII.

Noting that good corporate governance is a strategic necessity, Moily said the panel has recommended 17 guiding principles on corporate governance and they are being looked at. "These principles cover various aspects such as responsibilities of independent directors and the functioning of a company's board."

ITC chairman YC Deveshwar noted that governance is a systemic process and suggested that a rating mechanism would help in assessing overall governance activities at companies.

Moily said the current Companies Bill is essential for an enlightened corporate governance process. FE

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