Unleasing
the Power of India's Corporate Boards
Quality
Times, Jan-Feb 2003
"Few people realize the untapped potential
of corporate boards in creating boards in creating values for
the company. It is unfortunate that the CEOs have so far treated
the boards as an interference in theit work and something that
diminishes their power."
Indian corporate sector has had to live with
a tradition of borads shaped by a culture of deference and promoter
and domination over companies. The most serious criticism levelled
at Adrian Cadbury's report on corporate governance was that
it failed to address the 'inherent conflict of interest caused
non-executive directors being both an integral part of the management
team and also monitors of thier executive colleagues on the
board'.
There is a general feeling that involving board
and especially the non-executive directors slow down the decision
making. Regard, therefore, has to be given to the recruitment
of the directors.
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