Governance is not about legislation, but is a continuous process and not restricted to the present day legal requirements. Neither the independent directors nor the executive directors are adversaries to each others, but they were rather on the same side of the coin," said M Damodaran, Chairman, SEBI, during the inaugural speech of the CII corporate governance summit held in Mumbai on Wednesday. I hope that the Indian corporates would soon reach a stage where their internal systems are stricter than the mandatory legal requirements, he added.
To a question of whether good corporate governance would ensure that a company would perform well, Damodaran made a turnaround of the question by asking, "Can a company continue to do well, if there was no good corporate governance?" Delving on the 'independence' of independent directors, he said that the point in question was compensation and marked, "Too low, and you won't retain the good ones, too high and their independence will be lost."
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