As per SEBI regulations, at least half of the board of directors shall comprise of independent directors, where the listed entity does not have a regular non-executive chairperson.
Vishnu Chemicals’ board comprises of more than 50% independent directors, which is in full compliance with the regulations. Moreover, CMD’s son as Joint MD gives clarity on succession.
As per the best international corporate governance practices, role of chairman and managing director should be split. However, most of the family owned companies in India have not done it. Also, this is more important for larger companies. While this may not be the best CG practice as per global norms, but well inline with the practical aspects in India. This is not a red flag situation.
As per the best international CG practices, shareholding should not be concentrated. However, many investment gurus give significant importance to promoters’ skin in the game with majority shareholding. In my opinion, many Indian companies with significant promoter stake have done very well at the same time there are only handful of Indian companies with dispersed shareholding having such track record.
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