Monday, April 6, 2015

Woman director - BSE 200 companies

Business Standard in its April 6, 2015 edition reported that BSE 200 companies are keen to follow the Rule for mandatory appointment of woman director in spirit. It reported that 90 companies already had at least one woman director and 80 companies have appointed one woman director after announcement of the new Rule. It has also reported that out of the 80 newly appointed directors, only seven are related to promoters. The news is silent about the balance thirty companies. Presumably, they have failed to comply with the new rule.
Does it augur well for the quality of Indian corporate governance? The answer is no. There are 5,628 companies listed in BSE, of which 4,268 are eligible for trading. Prime Database research shows that out of 1478 companies listed in NSE, 987 companies had no woman director when the new rule was announced. Out of those 674 have since then appointed woman directors of which a majority appointments are from the promoter family.
The Business Standard report shows that most listed companies in India are not serious about complying with corporate governance norms. This is a bad news.

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