At a time when corporate governance has become a major cause of concern following the Satyam scam, Jamshed Irani, Director, Tata Sons Limited, believes that frequency of financials reporting is not so important, but accuracy and efficiency of the same is more crucial to ensure quality governance.
While delivering the first lecture of the ‘Gujarat NRE-AMA Center for National Integrity’ on ‘Corporate Governance through the Lens of an Indian Corporate’, Irani said, “Corporate governance is not something which can be mandated. In fact, it is a culture, which has to be built up gradually with strong link between the board and the management of the company.”
Irani added that corporate governance and financial governance are two main parts of the governance. In financial governance, accuracy and efficiency of the reporting are more important than its frequency. As far as corporate governance is concerned, provisions like clause 49 can make some difference, but if the CEO or CFO is determined to do something wrong, no one can stop him.
