The issue of corporate governance in the National Stock Exchange (NSE) has made the entire corporate world think. Meanwhile, now the question is arising that the same person should not be kept at the top management position in any company for a long time.
Former SEBI chairman M. Damodaran believes that after the NSE incident, the corporate world should take special care of some things. First of all, it should be kept in mind that when one or two persons are working in top management positions for years, then problems may arise in the future. This should be solved by every company in time.
keep these things in mind
M. Damodaran says that the CEO or MD is appointed as a non-executive member of the board. In many cases, this process acts as a hindrance to the powers or powers conferred on the newly appointed MD. The bigger problem is that when both former and current office bearers work together and run the organization as an individual fiefdom, they do not feel it necessary to share information with the rest of the board. Also do not give importance to the role of the board in corporate entities. Therefore, his past track record and achievements should be taken into account before taking him on the board.
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He said that the NSE case saw how the board was also not giving timely information to the regulator. In such a situation, non-sharing of correct information to the regulator should be treated as a separate punishable offence.