Sebi proposes overhaul of corp governance norms
The measures incorporate the Adi Godrej committee report, the Companies Bill 2012 and Sebi’s own corporate governance guidelines in one document. Sebi has, however, differed from the Companies Bill saying it wanted the “jurisdiction to prescribe matters relating to corporate governance for listed companies” to be given to it. But “it was decided by the Ministry of Corporate Affairs that core governing principles of corporate governance may be provided in the bill itself”.
It has noted that “the remuneration paid to CEOs in certain Indian companies (on average) are far higher than the remuneration received by their foreign counterparts and there is no justification available to that effect”. It has proposed mandatory disclosure by listed companies of ratio of remuneration paid to the each of their directors and their median staff salary. About succession planning, it said the best way to ensure that a company does not suffer due to a sudden
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