The protection of investors interest, especially the small investors; the promotion of transparency within business and industry; the need to move towards international disclosure standards by the corporate sector would help develop higher levels of investors confidence in business and industry, Confederation of Indian Industry (CII) opines.
Commenting on the statutory compliance standards in the country, CII said that corporate governance goes far beyond company law. The quantity, quality and frequency of financial and managerial disclosure, the extent to which the board of directors exercise their fiduciary responsibilities towards shareholders, the quality of information that managements share with their boards, and the commitment to run transparent companies that maximise long term shareholder value cannot be legislated at any level of detail. CII feels that these evolve due to the catalytic role played by the more progressive elements within the corporate sector and, thus, enhance corporate transparency and responsibility.
SEBI through Clause 49 made it mandatory for listed companies, that Board shall lay down a Code of Conduct for all board members and senior management of the company. The code of conduct shall be posted on the website of the company. All board members and senior management personnel shall affirm compliance with the code on an annual basis and annual report of the company shall contain a declaration to this effect signed by the CEO.
See full Press Release.
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