Time and again we have had problems in various companies. After every disaster in a company new rules are framed and the company law board expects that in future all companies should comply with the new set of rules. This goes on until somebody finds another loophole.
Isn't it strange that public limited companies which have board of directors some of whom are independent, manage to overlook the wrongdoings in a company and then try to escape being held guilty.
In the first place as Directors they are supposed to manage, direct the company in a right & proper way, then if the company fails to do so ,why are these same directors not held guilty. In many big companies they have a system of signing the code of conduct wherein it clearly mentions that the employee has to keep in mind the well being of the company and should not in any way do things which would harm the interests of the company. Why then are we reading about these mishaps in corporate world very often. Isn't it time to hold these Directors personally responsible for the wrong doings in a company where they are paid and are duty bound to serve the company and protect the interests of the stakeholders. One would be surprised to note that in a Housing Cooperative Society the Committee members are held responsible for any wrong doing even though the posts are honorary. Why then the Directors of Corporate world are spared from such accountability. Isnt it time for the Government, Company Law Board to make rules more stringent and make the Directors personally liable for any damages so that Corporate Governance is implemented strictly.
Isn't it strange that public limited companies which have board of directors some of whom are independent, manage to overlook the wrongdoings in a company and then try to escape being held guilty.
In the first place as Directors they are supposed to manage, direct the company in a right & proper way, then if the company fails to do so ,why are these same directors not held guilty. In many big companies they have a system of signing the code of conduct wherein it clearly mentions that the employee has to keep in mind the well being of the company and should not in any way do things which would harm the interests of the company. Why then are we reading about these mishaps in corporate world very often. Isn't it time to hold these Directors personally responsible for the wrong doings in a company where they are paid and are duty bound to serve the company and protect the interests of the stakeholders. One would be surprised to note that in a Housing Cooperative Society the Committee members are held responsible for any wrong doing even though the posts are honorary. Why then the Directors of Corporate world are spared from such accountability. Isnt it time for the Government, Company Law Board to make rules more stringent and make the Directors personally liable for any damages so that Corporate Governance is implemented strictly.
