Committee on Corporate Governance

• Uday Kotak on corporate governance has proposed rules aimed at bringing more transparency to the functioning of boards in the listed companies.
• The committee also proposed several measures to strengthen the role of independent directors.
• One of the proposals is to keep out relatives of promoter group from occupying the independent director’s place on the board.
• It recommended an amendment to regulate the information rights of significant shareholders and promoters.
• The other key proposal is to separate the role of Chairperson and MD/CEO at listed entities with more than 40 per cent public shareholding with effect from April 1, 2020.
• SEBI regulations do not mandate a separation of these posts.