InGovern Comments on Kotak Committee Recommendations

 

On October 5th 2017, the Uday Kotak Committee on Corporate Governance submitted its report to SEBI on recommendations in corporate governance regulations. Following is our overall view on the recommendations by the Committee:

  • Many recommendations are prescriptive in nature which presents a risk that companies may not adopt the spirit but undertake a ‘tick-box’ approach for compliance.
  • To avoid this, the recommendations should be categorised into 2 codes: Code of Acceptable Governance and Code of Desirable Governance
  • This puts the responsibility on the companies themselves as to what Code they desire to adopt.
  • The companies’ choice will also send a clear message to the investors based on which they can make informed investment decisions.

 

Our detailed feedback on the recommendations can be read from here: InGovern Comments on Kotak Committee Recommendations