'Company Act 1956 will be amended'

'Company Act 1956 will be amended'

hereUnion Minister of State for Corporate Affairs and Minority Affairs Salman Khurshid pouring water to a plant in the premises of TAPMI in Manipal on Wednesday. dh photoDelivering the inaugural lecture on ‘Corporate Governance’ at the T A Pai Management Institute (TAPMI) here on Wednesday, he said corporate governance borders on social responsibility. It is not only subscribed to philanthropic, charity and good behaviors, rather it should go beyond all this. It is a business in a manner of sustainable, societal, ethical, rational and friendly towards society. Currently, corporate social responsibility has no specific incentives in the country, he said.

Elaborating on the importance of adopting the Gandhian model of corporate business, Kurshid said “Ghandhian model proposed the transition between poor and rich and employees and owner. We find US adopting our model of public sector to bail out its bank and to carry out its financial matters. Indian model is realigned and justified. Indian model is transformed based on political and economic changes. We see paradigm shift in the corporate business after the measures introduced by Manmohan Singh during 90s,” he added.
Stating that mixed economy model has changed, he said public sector has begun to sink. NGOs and civil society are far more active than earlier. Government is itself restricting to the governing economy. Private sectors entering the financial market have aided the transformation, reforms and growth of the financial sector. Guidelines of the corporate governance should be changed. It should be simple, easy to understand and rational.
It is an impossible task and completely of no use if it is difficult to understand. In the coming years we will provide basic platform to corporate governance, he added.
He said “Satyam has bounced back. We were able to manage the crisis. Loyal employees of Satyam played a major role. Early Morning System has been introduced that gives away the lipid profile comprising an analytical and objective survey based on company’s conduct and the pattern.  We are working on the need for ombudsman and whistle blower into corporate affairs”, he said.
Manipal University Chancellor Dr Ramdass Pai, Pro Chancellor Dr H S Ballal, TAPMI Director Dr Saji Gopinath and others were present.
DH News service

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