due diligence

This tag is associated with 1 post

Corporate Governance


Corporate governance has been in the Indian news headlines quite recently in connection with the scam perpetrated by Raju on Satyam shareholders and employees. Interestingly,  Satyam was the recipient of numerous corporate governance awards. Just goes to prove that just because processes are in place, does not imply that the processes are being followed. The spirit of the law  is more important than the letter of the law. But then India is a nation that loves it’s forms, it’s idiosyncratic processes and customs,it’s  bureaucratic ways and any change is greeted with derision, disdain and shock. Processes are meant to be traditionalized, embedded into the culture of the company and not uprooted without a by your leave! Who minds it’s clutter?

For more laid-back news followers, Satyam was just another scandal in just another family-run business.Satyam despite all its protestations , was just that – a family-run business though it’s shares were listed on the Indian stock exchange and available via ADRs.The more engrossing and entertaining corporate scandal has been the IPL imbroglio and it’s many running installments in the Indian media rumor mill.

Now, the IPL has a governing council which is equivalent to a corporate board of directors. In theory, a board of directors is an independent body that oversees the management of the corporate body or entity. It is there to make sure that the right processes are adhered to, that due diligence is carried out while executing strategy and no hanky-panky or unethical acts are carried out by any of the top management honchos.

But in practice, this is easier said than done. Most corporate boards are appointed with inputs from the incumbent management and thus cronyism is the name of the game. The typical board is populated with members who thus tend to be hand-in-glove with top  management. This seems to have been the case with the IPL governing council. Despite the presence of luminaries such as Ravi Shastri, Sunil Gavaskar and M A K Pataudi on the governing council, the BCCI finds itself facing a scandal of gargantuan proportions with conflict of interest and high-handedness tarnishing the fabric of IPL governance.

Quote of the day:
If you can find something everyone agrees on, it’s wrong. – Mo Udall

Continue reading

Blog Stats

  • 68,338 hits

Make Time For Sports

RSS Sports, Health and Exercise

  • How to (Finally) Run More Consistently | Competitor.com February 6, 2016
    It’s critical to build the small habits that make consistency far easier to attain.See it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • Dare To Run: Crows and Seagulls February 4, 2016
    See it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • Stolen base - Wikipedia, the free encyclopedia February 4, 2016
    See it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • An evening with Gower February 4, 2016
    Talking captaincy, elegance and the playing of spin with the great England stylistSee it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • The real Jadeja February 2, 2016
    Behind "Rock star" and "Sir Ravindra Jadeja" is a loyal young man who has made the most of life's hard knocksSee it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • Are Virat Kohli and Anushka Sharma calling it quits? February 2, 2016
    Are Virat Kohli and Anushka Sharma calling it quits? Virat Kohli was named the top ICC T20I batsman on Monday for his consecutive half-centuries against AustraliaSee it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • Cycling Has Moved From Actual Doping to 'Mechanical Doping' February 2, 2016
    After a century of pumping themselves full of all sorts of performance-enhancing (and other!) drugs, it appears that at least one pro cyclist has found an easier way to cheat: hiding a motor inside the bicycle frame.See it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • Here's how to beat Novak Djokovic — if anyone actually can February 1, 2016
    Novak Djokovic might be playing the best tennis the world has ever seen at the moment. How do you beat the six-time Australian Open champion? And who has the tools to do it?See it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • Federer, Nadal and the one who defied us all February 1, 2016
    Tennis: It takes two to tango, as they say, and only two. Three's a crowd and if you're it, don't expect anything except the cold shoulder and a nod to the door. ISee it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
  • Is Shane Watson Australia's greatest ever captain? February 1, 2016
    Cricket: Is Shane Watson Australia's greatest ever captain? After his brilliant all-round, man of the match performance in the third and final T20 international agaSee it on Scoop.it, via Sports, Health and Exercise
    Linus J Fernandes
Follow

Get every new post delivered to your Inbox.

Join 452 other followers

%d bloggers like this: