Business Ethics and Corporate Governance, Second Edition

EFFORTS TO INITIATE CORPORATE GOVERNANCE IN THE COUNTRY

The Companies Amendment Act, 2000

Many provisions relating to corporate governance such as additional ground of disqualification of directors in certain cases, setting up of audit committees, directors’ responsibility statement in the directors’ report, etc. were introduced by the Companies (Amendment) Act, 2000. Corporate governance was also introspected in 2001 by the advisory group constituted by the standing committee on International Finance Standards and Codes of the Reserve Bank of India under the chairmanship of Dr Y. V. Reddy, the then Deputy Governor.

The Enron debacle of 2001 involving the hand-in-glove relationship between the auditor and the corporate client, the scam involving ...