New Delhi, Oct 22: Infosys Technologies chairman NR Narayana Murthy said on Friday that corporate governance had not received due attention in the country. "The reason for this can be traced to a feudal mindset and because the country has not learned to put public good ahead of private good," he said.Naryayana Murthy was speaking at lecture on Corporate Goveranance organised by CII here on Friday.
Listing out necessary provisions for installing corporate governance, Narayana Murthy said directors had to be choosen on the basis of their competence. Further, there should be independent members on the board of directors. Moreover, the audit, nomination and compensation committees have to be headed by independent directors. He said that there should be no insistence on physical presence for directors on board meetings and that directors should be compensated on the bases of performance.
He, however pointed out that while corporate governance is a necessary condition but it is not a sufficient condition. He said that the four standards that constitute good corporate governance were consolidation of financial statements, deferred income taxes, segment reporting and related party disclosure.
He was of the opinion that financial institution nominees should be nominated on the basis of their functional expertise.
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