During the G20 Summit in Delhi last month, the G20 leaders endorsed the revision of the G20/OECD Corporate Governance Principles. First issued in 1999, these principles together with the UK’s Cadbury Committee report from 1992, and the Sarbanes-Oxley Act of 2002- a US law, have shaped the governance landscape.
The six enunciated in this revision are (i) Ensuring the basis for an effective corporate governance framework; (ii) The rights and equitable treatment of shareholders and key ownership functions; (iii) Institutional investors, stock markets, and other intermediaries; (iv) Disclosure and transparency; (v). The responsibilities of the board; (vi). Sustainability and resilience. Each of the principles goes on to list a series of supporting principles and sub-principles.
A reading of these principles will show how Indian regulations compare well with the best-in-class globally. Nonetheless, the revisions are a pointer to the tweaks and progressive changes that we should come to expect in our markets.
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