Gokarn was speaking at a conference on corporate governance organised by IIMC in association with National Foundation for Corporate Governance, New Delhi. The Indian economy is the twelfth largest in the world by market exchange rates and the fourth largest in terms of GDP, measured on a purchasing power parity basis (PPP).
The Indian Institute of Management-Calcutta is also going to organise 5-7 days workshops for independent directors of corporate companies in the format of executive education programme. The premier institution is planning this programme in the backdrop of the evolving significance of corporate governance during the last two decades that has had a tremendous impact on all the countries and business organisations.
"We had directors training programmes during the last three years but the response was very bad, so this year we have restructured the training and would organise the workshop in this campus," said Ashish Bhattacharyya, professor of finance & control and coordinator of IIMC Centre for Corporate Governance.
When asked more about the codes of corporate governance that are followed at will in India, Bhattacharyya said: "Corporate governance is as good as the chief executive officer (CEO) of a company wants it. Independent directors have two roles, one is advisory and the other monitering; but mostly they are used for the advisory roles and not the monitering ones. The system should be so made that the directors get to meet each other before a board meeting and take a collective view on critical issues of the company."
CEOs should encourage this idea of directors meeting separately and facilitate the same, he added. "Corporate governance law in the country is fine and adequate but needs implementation," he told reporters.