Independent Corporate Governance Research and Peer Networking Resources for India’s Public Companies
Director Notes India: The Role of the Nomination Committee in Board Independence and Composition in Indian Companies
8 March, 2017
The role and purpose of the nomination committee has evolved significantly in India’s corporate governance landscape over the last two decades. After years of debate, both the Companies Act, 2013 and the listing regulations of the Securities and Exchange Board of India include a mandatory nomination and remuneration committee (NRC) for the appointment of all directors, including independent directors. This Director Note explores the development of the nomination committee concept in India, explains the current legal regime with respect to nomination committees, and discusses the purpose of the nomination role of the NRC.
16 November, 2016
Concentrated ownership of Indian companies and the use of complex group company structures create the potential for abusive related party transactions (RPTs) that erode value for minority shareholders. India’s substantive legal framework for regulating RPTs has slowly converged toward international standards. While previously there was considerable emphasis only on disclosures, other mechanisms such as board or audit committee monitoring and approval of RPTs or independent shareholder approval are now part of the Indian legal framework on RPTs. The real import of the new standards will depend on the extent to which minority shareholders, including institutional shareholders, participate in the evaluation and voting rights they have been afforded.
15 January, 2016
Handbook of Corporate Governance in India is designed as a practical reference tool reviewing key features of the legal and regulatory standards applicable to today’s Indian corporate boards, from their composition to their activities.