Corporate Governance Guidelines for Insurers Updated

The focus and emphasis on corporate governance increased significantly since the corporate fraud and internal governance failure came to light in the context of Satyam Computer Services Limited. Post the Satyam issue the legislature has taken steps to incorporate certain basic principles of corporate governance in the revamped Companies Act 2013 (Companies Act). These steps include provisions relating to the constitution of the board of directors, appointment of independent directors, constitution of certain mandatory board committees and the duties of directors. For listed companies corporate governance norms are even more stringent due to the need for protection of interests of multiple minority investors.