Make `compliance committee' mandatory for all corporates: ICSI

A core group constituted by the council of the Institute of Company Secretaries of India (ICSI) has suggested that the setting up of a compliance committee on corporate governance should be made mandatory for all public limited companies having a paid-up capital of Rs5 crore and above.

The group, set up to look into the issue of strengthening corporate governance structure in the country, has submitted its recommendations to minister for corporate affairs Salman Khurshid.

Among other measures, the group has also suggested limiting the number of companies an individual can serve as director to seven.

In case an individual is a managing or whole-time director in a listed company, the number of companies at which such an individual can serve as non-executive director should be restricted to 10, and the number of listed companies at which such an individual can serve as a non-executive director should be restricted to two.

The recommendations are based on a detailed study of the prevailing corporate governance practices across the world, the recommendations of various committees and corporate governance codes and the best practices adopted by the industry.

Some of the other important suggestions are as follows: