• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

KOCHI, July 5

MR Justice P.R. Raman of the Kerala High Court has called for good governance in corporate sector to promote stability and long-term sustenance of stakeholder relationship.

Inaugurating a one-day seminar on `Corporate excellence through corporate governance and corporate restructuring', organised by CII-Kerala, Mr Raman said that there was an urgent need for unitary control and consensus between regulators on the one hand and corporates on the other to minimise regulatory prescriptions in lieu of voluntary codes to ensure excellence through self-imposed corporate governance.

"Increasing incidence of vanishing companies, mismanagement in high places, unethical business practices and widespread shareholder disenchantment will result in corporate obsolescence and there is urgent need for an integrated approach by the various regulators and corporate sector.''

Greed for profit and fear of loss of capital are the two important factors which are crippling the corporate sector and companies should come out of this by formulating and implementing excellent systems and processes in corporate governance at all levels, he added.

Making a presentation on `Holistic approach to corporate governance', Mr L.V.V. Iyer, a corporate lawyer from Hyderabad, emphasised the need for stakeholder approach rather than shareholder approach.

Stakeholder approach deals with governing the companies as opposed to managing them.

"The stakeholders include employees, customers, lenders, community and shareholders."

Send this article to Friends by E-Mail

Stories in this Section
NIIT software business gets distinct identity — Not a prelude to spin-off, says Pawar

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line