MUMBAI, Dec 2: Indicating robust corporate governance practices, most companies on the 30-share Sensex were found to have made adequate disclosures on business segments, have women board directors who were not part of promoter group as well as have uncomplicated holding structures, says a recent report.
Significantly, all of them have made timely payments to lenders, creditors and suppliers.
The findings are part of a report on ‘Corporate governance scorecard’, a tool which has been developed by World Bank Group member IFC and Asia’s oldest bourse BSE to aid companies in identifying areas of improvement against generally accepted good practices and promote effective decision making, risk management and governance structures.
An initial study conducted on the Sensex companies to assess corporate governance trends showed that 26 firms had adequate disclosures on business segment information.
Besides, 26 companies had women directors on the board who were not part of the promoter family.
The report also found that 27 out of the 30 Sensex companies did not have complex holding structures, such as cross holdings and pyramidal structures.
Meanwhile, the study also found that only one of the 30 firms had detailed disclosures on succession planning, while only three provided detailed transcripts or webcast of the shareholder meetings held over the past one year.
Moreover, only three companies had robust internal audit practices, while four firms facilitated shareholder participation via video/tele-conferencing or advance question submissions.
“The launch of this scorecard will help companies to go extra mile beyond compliance and surpass global standards,” BSE managing director and CEO Ashishkumar Chauhan said.
The scorecard can also be used by a wide range of stakeholders including regulators, promoters and investors.
“It will encourage Indian companies to strengthen corporate governance practices, which will enable easier access to capital from global markets, improve transparency and enhance investor confidence,” IFC India country manager Jun Zhang said. (PTI)
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