Press Information Bureau

Government of India

Ministry of Corporate Affairs

31-August-2012 16:49 IST

Good Corporate Governance is Essentially about Effective & Responsible Leadership -Dr. M.Veerappa Moily

Union Corporate affairs Minister Dr. M. Veerappa Moily has underlined the need to bring in such a good corporate Governance that is essentially about effective and responsive leadership which calls for integrity, transparency and accountability. Dr. Moily was addressing the 2nd ICSI CORPORATE GOVERNANCE WEEK here in at New Delhi today. The minister said in the dynamic global environment good governance has assumed considerable importance and it is an essential requirement for socio economic development and a tool for inclusive growth. Also the reputation of corporates contributes 75% to success of Good Governance. He complimented the Institute of Company Secretaries of India for this initiative and said that ICSI has always demonstrated its commitment to corporate governance and is playing a leaders role in promoting good corporate governance practices amongst corporate India .

Dr. Moily said his ministry has always been in the forefront to facilitate corporate growth and at the same time putting in place an enlightened regulatory environment that ensures sustainable, equitable and inclusive development. It also ensures best corporate governance and practices for the purpose of accountable, responsible and transparent system of corporate governance.

He said the National Policy on Corporate Governance which is being drafted by committee headed by Mr. Adi Godrej to provide a world class corporate administration framework to facilitate growth of corporate sector in the country. Also, the Competition Amendment Bill has been drafted and is under the consideration of Group of Ministers head by the Finance Minister. The Minister said for the ease of doing business in India a committee is being formed consisting of members from all the relevant sectors concerned directly or indirectly with doing business in our country. The aim is to have a measurable target in terms of improvement in the rankings within a period of next 3 to 5 years.

Dr. Moily ensured that the New Companies Bill 2011 will be passed soon and will be instrumental in enlightening the regulator environment for better sustainability . He once again stressed on the need for economic stability & progress intertwined with Corporate Social Responsibility .

The other prominent speakers included Shri Nesar Ahmad , President ,The Institute of Company Secretaries of India (ICSI), Mr. Sunil Kant Munjal, Joint Managing Director ,Hero Motorcorp Ltd, Mr. U Venkataraman ,CEO –Currency Derivatives Segment and Whole Time Director ,MCX Stock Exchange, Shri P K Mittal, Council Member, ICSI, Shri Rajiv Bajaj , Chairman Northern India Regional Council and Shri N K Jain, Secretary & CEO of ICSI.

The Institute of Company Secretaries of India (ICSI) has observed the 2nd ICSI CORPORATE GOVERNANCE WEEK on the theme ‘Good Governance For Sustainability’, from August 27th to August 31st 2012 across the Country. The idea behind the ICSI Corporate Governance Week is to create awareness, propagate the best practices of corporate governance and mainstream corporate responsibility in the social fabric.

*****

ST/-

Good corporate governance emphasizes effective leadership, integrity and transparency to secure accountable and sustainable corporate conduct. Good corporate governance requires effective and responsible leadership characterized by integrity, transparency and accountability; corporate reputation underpins governance success. Policy and regulatory measures-including a national corporate governance policy, competition law amendments and a new companies bill-are being advanced to strengthen the regulatory environment, promote sustainability, ease of doing business, and mainstream corporate social responsibility, with professional bodies disseminating best practices.