The New York Times DealProfessor has a column Burying Bear Stearns that highlights the takeaways from the Bear Stearns saga, which incidentally are matters we often endeavour to stress on this blog. They are:
– Moral hazard– Systemic risk– Corporate governance
Training Directors
I had earlier posted about the Chartered Director test prescribed by the Institute of Directors in London, which is a qualifying examination for directors on corporate boards. In response, one our readers from Australia, Susie Reece Jones, has been kind enough to provide us with some details about the situation in Australia in this regard. In Australia, there is almost a de facto pre-requisite...
An Examination for Directors
A few weeks ago, we carried a post by Pramod Rao discussing the implications of recent changes to Clause 49 of the listing agreement, the key ones being strengthening the role of the independent directors on boards of Indian listed companies. Although relegated only to a non-mandatory provision, one of the changes states that a “company may ensure that the person who is being appointed as an...
Micro..hoo: A New Twist
This new development on the international M&A front is worth briefly noting on this blog. We had all expected to see a highly-contested battle for control of Yahoo! panning out over the next few months. A hostile bid by Microsoft was keenly on the cards. But, it all ended last weekend turning out to be a damp squib, with CEO Steve Ballmer announcing Microsoft intention of withdrawing from the...
Corporate Governance & Enforcement
The corporate governance norms prescribed by SEBI were tightened earlier this month (as discussed here), whereby the requirement of independence of directors has been made more stringent. However, it is disheartening to note that while there is a move by the regulator to enhance mandatory norms on corporate governance at a substantive level, there is a lot still left to be desired when it comes...
Regulating Companies: Whose Role is it Anyway?
In the case of listed companies, when it comes to corporate governance, there is a classic dichotomy in regulation. On the one hand, it is the Ministry of Company Affairs that is largely responsible for the implementation of the Companies Act, 1956, while it is SEBI that is responsible for implementation of the corporate governance norms, which is contained in Clause 49 of the listing agreement...
Directors’ Duties During Times of Crises
The unexpected market conditions in recent times have rocked corporate boards world over. Healthy companies have begun to declare less satisfactory results, while the unlucky one’s face extinction. Companies are increasingly being exposed to liabilities towards shareholders, creditors and other counterparties, and consequently, directors of such companies are having to face difficult conditions...
Enforcement of Corporate Governance Norms
A new paper “Corporate Governance, Enforcement, and Firm Value: Evidence from India” authored by Dhammika Dharmapala & Vikramaditya Khanna has been posted on SSRN. Here is the abstract: “This paper analyzes the effects of corporate governance reforms and enforcement on stock market development and firm value, using a sequence of corporate governance reforms in India. Our results, taken...
Corporate Governance Study
Research in areas of corporate governance involving Indian companies has not been substantial, compared to that in its emerging market counterparts such as China. However, a recent study that has been commissioned by the IFC Global Corporate Governance Forum in consultation with SEBI and the National Institute for Securities Markets (NISM) is likely to bridge the gap. Here are the excerpts from...
Faith-Based Indexes on Dow: For Hinduism and Buddhism
The Prime Newswire reports that Dow Jones Indexes and Dharma Investments, a leading private investment firm pioneering the development of faith-based investment have launched the Dow Jones Dharma Indexes. The new indexes measure the performance of companies selected according to the value systems and principles of Dharmic religions, especially Hinduism and Buddhism. The report adds: “To be...
Recent Comments