Dear reader,
ICGN - ACCG International Conference on Corporate Governance was jointly organized by International Corporate Governance Network (ICGN) London and Asian Centre For Corporate Governance (ACCG) at Hotel Taj Mahal, Mumbai, on 10th November 2006. The conference was Co-hosted by Bombay Stock Exchange (BSE) and endorsed by Securities & Exchange Board of India (SEBI) and Global Corporate Governance Forum (GCGF), Washington. The conference was supported by Singapore Institute of Directors (SID), The Hong Kong Institute of Directors, Malaysian Institute of Corporate Governance, Thailand Institute of Directors and Indonesian Institute for Corporate Directors (IICD). Indian Merchants’ Chamber and Institute of company Secretaries of India also supported the conference.
.The conference was addressed by many eminent international speakers as well as attended by participants from several countries and focused on the benefits for companies in reform, as they have to improve their access to capital. For the investors coming to the conference from world over, the conference helped them understand the environment in India. Indian companies learnt from the overseas companies, who come to attend the conference. The overall idea was that this conference provided a significant opportunity for dialogue and exchange of ideas between international investors from USA & Europe and companies in India. Officials from regulators like SEBI, RBI and Stock Exchanges.
Mr M. Damodaran – Chairman, Securities & Exchange Board of India (SEBI) delivered inaugural address. The focal point of Mr Damodaran’s speech was that SEBI as a regulator believed that it’s “first task is to have regulations that are simple, that are easily understood because if regulations are couched in language which seeks to confiscate the intent, if regulations become what I tell the draftsmen’s delight and cause more confusion than clarity, if regulations become the playfield for lawyers because you and I cannot interpret them on a plain reading of regulations, clearly those regulations are not going to facilitate good conduct or Good Governance” he said.
Dr. Mark Mobius, Managing Director, Templeton Asset Management delivered keynote address. Dr Mobius through his international experience as a seasoned investor brought out seven ways in which Shareholder Rights are Violated the world over. He with the help of case studies in Indonesia, Hong Kong & Malaysia. He suggested ways to Improve Corporate Governance Practices. He called for a change in attitude by governments and their officials to one of action rather than apathy. He emphasized that Governments need to realize that the flow of foreign funds will not continue unless the promised reforms are made and continue to be made. Officials, on the other hand, need to be prepared to confront local business leaders to enforce the rights of all shareholders in an equitable manner.
Full and complete disclosure of all corporate activity, he added was of utmost importance. Establishment of equal rights for all shareholders was crucial to governance reforms. The rights of all shareholders need to be enforced rigorously. Ensuring enforcement by giving the regulatory bodies the teeth to administer commensurate punishment for violators of those rights and adequate compensation for the losses incurred was the ultimate in improving investment climate of any country.
Mr Mervyn King, Author of famous King’s Committee Report on Corporate Governance, delivered valedictory address using the ‘Corporate Governance Mantras’ authored by Mr M.K.Chouhan.
He said that Corporate ‘SANSKARAS’ form the foundation of Corporate Governance because it is the basic DNA of the company. Secondly, he emphasized the fact that it is the ‘Collective Wisdom’ of the Board that is more important than the individual intelligence of a single Director. But it is the Chairman’s responsibility to bring the best out of Board Members. Bringing out difference between Governance & Management he said Board Governs, it does not micromanage. Commenting on another Corporate Governance mantra he said he believes that Independence is state of mind and Integrity cannot be mandated. He concluded by saying that Corporate Governance is more about the principles company believe in and less about what code prescribes.
The conference was addressed by several other International experts from USA, Europe and Asia including India.
One of the special features of the conference was ACCG Corporate Governance Awards & Gala Dinner. Mr Philip Armstrong – Head, Global Corporate Governance Forum was the Chief Guest and Mr. Mervyn King was guest of honor and gave away the Awards. It is for the first time in Asia that ICGN London & Asian Centre had organized such a conference.
The ICGN membership is drawn from more than 400 organizations in 38 countries, and includes institutional investors, Pension Funds, investment managers and other investors worldwide, who manage more than US$10 trillion in global capital. This conference in India had been great opportunity to highlight the improved corporate governance agenda of India before an international audience and brought great benefits to India as well as Global investing community.
Asian Centre for Corporate Governance (ACCG) is a non-profit institution was launched with a Mission “To promote Global Corporate Governance principles of Transparency, Accountability & Equity and to become a ‘Catalytic Institution to bring about qualitative improvements in the Corporate Governance ‘Processes & Practices’ of Asian Companies for optimizing the shareholder’s as well as stake holder’s value in a balanced manner.”
For full transcript of the conference speeches of all the sessions, please contact accg@asiancentre.org
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