Strengthening Corporate Governance: A New Age of Entrepreneurship in India

Unfortunately many Indian companies still regard corporate governance largely as a “box-ticking exercise.” In these organizations, governance will remain a subject of mere academic interest unless recognition of its importance permeates the board and management and then cascades down throughout the firm. Directors’ independence is  a major concern of companies, particularly since listing requirements make it mandatory for companies to meet the prescribed independent board directors number (at least one-third of board members must be independent) by 31 December 2005. This report details ways companies can see corporate governance as an ongoing process of conduct rather than a compliance tool.