Hyderabad, Dec. 11
The Government is seriously considering a proposal recommended by the Parliamentary Standing Committee on Finance regarding separation of the posts of chairman and chief executive officer of a company.
Mr R. Bandyopadhyay, Secretary to the Ministry of Corporate Affairs, said though there were different views on the issue, the dominant view appeared to be in favour of the proposal. “The idea behind the proposal is to make the chairman preside over the board (of the company), while the CEO takes care of the day-to-day administration,” he said at a conference on Corporate Governance held here recently.
He said the draft Companies Bill will be placed before Parliament during the ensuing Budget Session and by the end of the fiscal the new Companies Act may be in place. All issues of corporate governance, CSR and change in accounting practices have been embedded in the Bill, he pointed out.
Dr P. Rama Rao, President of Institute of Public Enterprise, called for more investments by Indian corporates in the research and development area, which at present was much lower in India compared with developed countries.
The conference discussed several issues such as ownership and boards, corporate ethics, corporate government in the financial sector and sustainable CSR activities.