Role Played By Different Committees In Regulating Corporate Governance.

Q14. Explain role played by different committees in regulating corporate governance?

Ans. Role played by different committees in regulating corporate governance are: The core roles of the various committees in regulation of corporate governance are as follows:

  1. Board of Directors: The Board’s role is that of trusteeship to protect and enhance shareholder value through strategic provision. The strategy should aim at accountability and fulfillment of goals.
  2. Audit Committee: They have to provide assurance to Board on adequacy of  internal controls and financial disclosures.
  3. Compensation Committee: The committee has to recommend to Board compensation terms for executive Directors and senior most level of management below the Executive Directors.
  4. Investor Service Committee: It is to look into redressal of shareholder’s and investors’ grievances, approval of transmissions,  sub-division of shares, issue of duplicate shares, etc.
  5. Corporate Management Committee: Its primary role is  strategic management of  company’s business within Board’s approved direction/ framework.
  6. Divisional Management Committee: It is to realize tactical and  strategic objective  in accordance with Corporate Management Committee/Board approved plan.

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