Boards of Indian companies need to be more dispassionate about who they appoint and make appointments based only on ability, expertise and variety, a top India Inc official said today
"There is a drastic need for change in the way Boards function. There is also a need for our companies to be more dispassionate about who they appoint on their Boards, hiring them based on their ability, expertise and variety," Tata Steel Vice-Chairman, B Muthuraman, said at a CII event on Corporate Governance here today.
"How much of a Board's time is spent on taking care of compliance issues and how much is spent in creating a vision, or debating strategy of an organisation?" he asked and asserted there is an urgent need for companies to allocate enough Board's time to strategies and debate.
On enhancing corporate governance, the Tata Steel official said merely depending on laws would not help.
Muthuraman's views assume significance in the wake of Ministry of Corporate Affairs planning to present the new Companies Bill for consideration before Parliament soon.
