ICSI to chart uniform corporate governance code

The Institute of Company Secretaries of India (ICSI) has embarked on an ambitious project to chart a uniform corporate governance code, enlisting the support of other countries and the UN.

“We have decided to lead the development of this common corporate governance code. With the world becoming a global village, we feel a common code will go a long way in ease of doing business,” Mamta Binani, President of ICSI, said.

Speaking on the sidelines of a media event to announce the ‘Global Congruence on International Corporate Governance Day,’ to be held here on December 9-10, Mamta Binani said, “We have taken the lead by initiating this gigantic task to evolve a common code, which could take three-six years. Thus far, several countries have been engaged along with industry chambers and other bodies. Unless we garner the support of the industry, it would be hard to take this forward.”

ICSI has approached the United Nations Organisation to work together on the code. In addition, ICSI has initiated separate meetings with the consulates of various countries in New Delhi and is seeking to engage officers on special duty of several related ministries, she said.

India is among the first to have proper Secretarial Standards, which is a rule book that provides the base for conducting meetings and documenting various proceedings, she said.

And, under the new Companies Act, the role of Company Secretaries has further been enhanced and where they are bracketed along with MD, CEO and CFO.

Every listed company and every other public company with a paid-up capital of Rs 10 crore or more has to appoint a whole-time key managerial person. A whole-time company secretary is also required to be appointed in other companies. Apart from gender diversity, the role of company secretaries is also a lot more attractive for young women aspirants, she said.

Mamta Binani said, “India is witnessing phenomenal growth and expansion in the corporate sector. The growing demand for specialists in almost every sphere of corporate functions has lead to the emergence of professionals who can perform specialised skills. A Company Secretary is one such professional who is responsible for the efficient management of the corporate sector, ensuring compliance of various company legislations.”

There are more than 45,000 registered CS members and over 4 lakh pursuing education leading to CS careers. Over the past few years the number of women making an entry into CS as a career has gone up and if this trend is anything to go by, as in other careers, the number of women in this profession is likely to go up further, she said.

The Hyderabad event is aimed at evolving consensus on the code through discussion.

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