Home > Business > Business Headline > Report

Firms high on corporate governance

Ashok Divase and B G Shirsat in Mumbai | September 02, 2003 08:40 IST

Almost all Indian companies have been able to sign on independent directors on their boards in accordance with the corporate governance clause in the listing agreement for stock exchanges.

The clause says at least 50 per cent of the board must comprise non-executive directors.

A study by the Business Standard Research Bureau shows all the 30 companies on the Bombay Stock Exchange Sensex, for which annual reports are available for 2002-03, have complied with the clause.

If a list of companies complying with the corporate governance clause were to be prepared, A V Birla group company Grasim Industries would come on top.

Fully compliant

 

 

Total directors

NED*

Share
of NED %

Grasim

11

10

90.91

Hindalco

9

8

88.89

BSES

14

12

85.71

Tata Steel

15

12

80.00

Tata Engineering

13

10

76.92

ACC

13

10

76.92

GlaxoSmithkline Pharma

12

9

75.00

Satyam Computer

8

6

75.00

Nestle

8

6

75.00

HDFC

15

11

73.33

Ranbaxy Lab

11

8

72.73

Hero Honda

14

10

71.43

*NED: Non-executive director

Grasim has packed 90 per cent of its board with non-executive and independent directors. The company has three non-executive and six independent directors on its 11-member board.

Reliance Industries, the largest Indian private sector company, has non-executive directors making up 61.54 per cent of its board. On March 31, 2003, Reliance had eight non-executive directors, including six independent directors, and five executive directors.

Fast-moving consumer goods (FMCG) giant Hindustan Lever has non-executive directors making up 50 per cent of its board. Infosys Technologies and the state-owned Bharat Petroleum also have 50 per cent of their boards filled with non-executive directors.

Multinational companies such as Colgate (55.56 per cent), Castrol (58.33 per cent), ITC (69.23 per cent), Nestle and Glaxo Smithkline Pharma (75 per cent each), too, have complied with the corporate governance clause.

Tata group companies like Tata Steel (80 per cent), Tata Engineering (76.92 per cent) and Tata Power (66.67 per cent) have all done better than the 50 per cent requirement.

The promoters of TVS Motors (88.89 per cent), Nirma (80 per cent), Ranbaxy Laboratories (72.73 per cent) and Bajaj Auto (69.23 per cent), too, have non-executive directors on their board well above the 50 per cent norm.


Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor





People Who Read This Also Read


US biotech cos plans unit in AP

ICICI Bank buys stake in HFCL

Airport projects to take off






Powered by










Copyright © 2003 rediff.com India Limited. All Rights Reserved.