Opinion: Corporate governance in family businesses3 min read 25 Feb 2019, 11:32 PM IST
The underlying theme of the new reforms is to achieve an independent board
Corporate governance is a key area of focus for many stakeholders today. There has been a significant rise in its importance, owing to very public, messy scandals in blue chip companies such as Satyam, as well as efforts by regulators to ensure strict investor and minority protection. This culminated in the Securities and Exchange Board of India constituting the Uday Kotak Committee on corporate governance, which delivered its report in October, 2017. Many of its reforms come into effect on 1 April, aiming to break the nexus between promoters and their companies. Another underlying theme was to achieve an independent and wholesome board. Even before the report, many Indian promoter companies had begun to improve their corporate governance and, hence, these reforms were not a surprise for them.