The Hindu : Foundation for corporate governance

Online edition of India's National Newspaper
Wednesday, Sep 03, 2003

Business

Business

Foundation for corporate governance

By Our Special Correspondent

NEW DELHI SEPT. 2. The Union Cabinet today approved a proposal to set up a `National Foundation for Corporate Governance' which would be registered as a not-for-profit trust under the Indian Trusts Act, 1882. The National Foundation would be a Government-private venture with contribution from industry and other connected institutions.

For setting up the National Foundation, the Central Government will make a one-time contribution of Rs. 10 crores as grant while the Confederation of Indian Industry (CII) has confirmed a contribution of Rs. 3 crores and the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI) Rs. 1 crore each. Contributions from other industry associations, philanthropic organisations and international agencies would also be solicited.

Based on the recommendations of a study group set up by the Department of Company Affairs to encourage good corporate governance, the National Foundation would have three broad functions: Research and studies; Education, promotion and development; Accreditation and awards, all connected with corporate governance and excellence.

The broad objectives of the National Foundation include providing a platform to deliberate issues relating to good corporate governance as a key to sustainable wealth creation, sensitising corporate leaders on the importance of good corporate governance, self regulation and directorial responsibilities — statutory, social and environmental. The Foundation would also be expected to provide research, training, practice, capacity building, standard setting, advocacy, rating, monitoring, recognition and related support in the field of corporate governance.

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