Tamil Nadu - Chennai

Seminar held on Corporate Governance

CHENNAI: As a fall out of Satyam-Maytas episode, questions have raised about the role played by the independent directors. The debate now is whether to leave the Corporate Governance in the domain of self regulation or make it more prescriptive and bound by statutory rules and regulations, said Ministry of Corporate Affairs (Inspection & Investigation) R.Vasudevan here on Friday.

Addressing a national seminar on Corporate Governance ‘myth to reality – a way forward,’ he said “so far it was not a mandate under law to regulate independent directors and we never thought of it. The deal was a real eye-opener for us. We are now reviewing the whole issue and will see whether the companies are investing their funds in related parties’ accounts or elsewhere. The issue will come up before Parliamentary Standing Committee.”

In his inaugural address, MCA Joint Secretary, Jitesh Khosla said Corporate Governance can not be legislated, but it has to be demonstrated. The auditors have a role to play and they have to speak up, when the decisions are biased.

Law Commission Chairman, A.R. Lakshmanan, said that Corporate Governance should not be confined to regulatory rules, but it should get extended to all entities, wherever any economic activity takes place.

The seminar was organised by the Institute of Chartered Accountant of India and National Foundation of Corporate Governance.

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