India’s review of corporate governance prompted by the Satyam scandal is now expected to result in the issue of corporate governance guidelines by the end of December, according to India’s Corporate Affairs Minister, Salman Khurshid. The guidelines are expected to be voluntary for the first year and are expected to cover issues such as directors’ remuneration, appointment of independent directors and their responsibilities and auditor’s liability.
A set of draft proposals were released by the Confederation of Indian Industry (CII) this week, and the Corporate Affairs Minister hasd indicated that most of the CII recommendations will be included in the Government’s final report.
“We agree with most of the recommendation made by CII in its report. However, there could be some clauses on which we have differences. We will discuss those before giving our final report,” said Salman Khurshid.
The draft proposals are due to be made available for comment on the CII website.