Business Ethics and Corporate Governance, Second Edition

KUMAR MANGALAM BIRLA COMMITTEE, 1999

The Birla Committee’s recommendations consist of both mandatory recommendations and non-mandatory recommendations.

Mandatory Recommendations

1. Applicability: These are applicable to all listed companies with paid-up share capital of INR 3 crore and above.
2. Board of directors: The board of directors of a company must have an optimum combination of executive and non-eutive directors. The number of independent directors should be at least one-third in case the company has a non-executive chairman and at least half of the board in case the company has an executive chairman.

   Kumar Mangalam Birla Committee defines independent directors as directors who apart from receiving directors’ remuneration do not have any material ...