Has Corporate Governance Improved in India?

Mr. Ramlinga Raju the prime accused for the Satyam fraud case is seeking extension of bail. The courts had ordered that he should return to prison today.

After the Satyam fraud case in January 2009, there was a lot of noise about lack of corporate governance in India. A number of initiatives were considered regarding empowering independent directors, changing auditor appointments, review by SEBI etc.

Here is a video of the old news with Adi Godrej speaking about the failure of corporate governance. Watch the video to recall the issues discussed then.

Do you think during this period corporate governance has improved in India? Is it still the same and we are waiting for the next big fraud case to hit the news?

Advertisements

4 comments on “Has Corporate Governance Improved in India?

  1. Rolls to fix A380 engine fault, take profit hit

    Chief executive John Rose said the upgrade would be undertaken in collaboration with EADS-owned (EAD.PA) planemaker Airbus, Trent 900 customers, and regulators.

    In contrast, Tata’s announced a voluntary recall of nano…..without involving all the stakeholders in making the decision.

    Can we achieve highest standards of Corporate Governance in India?

    • Lakshmi,

      I had read the Rolls incident. In comparasion Tata is not recalling the cars, they are adding additional safety features to the existing cars. It nearly means the same thing, but it makes a slight difference in interpretation.

      Tata definitely would have obtained board permission, since this is going to cost money. It did voluntary because no other make car in India has had same incidnets, hence Nano had the defect. So they are being smart and taking preventive measures before legal action is pursued or brand image is impacted or sales reduce.

      Sonia

  2. Pingback: Corporate Governance in Private Limited Companies « Sonia Jaspal's RiskBoard

Comments are closed.