Good corporate governance will decide the flow of funds into companies and to the country. Companies need to strive to enhance not only shareholders? value, but also involve itself in nation building, M Damodaran, chairman, Sebi said.
Addressing a conference on the corporate governance organised by CII, Damodaran said that 98% of the companies listed with NSE do comply with the good corporate governance norms. ?Corporate governance should go beyond arithmetic and focus more on the content of the governance. Companies not only have an obligation towards the promoters and the stake holders but also towards the country as a whole,? he said.
He said that the companies should make their operations more transparent which would reflect the true valuation of the company to its share holders and make the job of the regulators easy. The outcome of a good corporate governance gets reflected in the long run, he said.
He said that the board members should not only grace boardrooms, but should take initiatives for value addition. The regulator had introduced Clause 49 last year for the companies to be followed.