The government is likely to come out with the national policy on corporate governance in the next two months, Corporate Affairs Minister Veerappa Moily said today.
A government-appointed panel headed by industrialist Adi Godrej has already submitted to the ministry the recommendations on corporate governance.
“We are evolving a national corporate governance policy... Within two months it will come,” Moily said while addressing a CII event here.
Noting that good corporate governance is a strategic necessity, Moily said the Godrej panel has recommended 17 guiding principles on corporate governance and they are being looked at.
These principles cover various aspects such as the responsibilities of independent directors and the functioning of a company’s board. Following the Satyam scandal, there have been rising concerns over these issues.ITC Chairman YC Deveshwar noted that governance is a systemic process and suggested that a rating mechanism would help in assessing overall governance activities at companies.