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:
- 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.
- Audit Committee: They have to provide assurance to Board on adequacy of internal controls and financial disclosures.
- Compensation Committee: The committee has to recommend to Board compensation terms for executive Directors and senior most level of management below the Executive Directors.
- 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.
- Corporate Management Committee: Its primary role is strategic management of company’s business within Board’s approved direction/ framework.
- Divisional Management Committee: It is to realize tactical and strategic objective in accordance with Corporate Management Committee/Board approved plan.