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Dabur cg

Corporate governance for DABUR Basic

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Dabur cg

  1. 1. Corporate governance of Dabur Prepared by:
  2. 2.  Established : 1884  Founder : Dr. S K Burman  Basic Motive : Manufacture of Ayurvedic Drugs  Achieved : By setting up manufacturing units and setting up Research and Development Labs  Expanded its product line in the mid 1900’s by launching Dabur Hair Oil and Chyawanprash  Added Oral Care Products in the 1970’s  Shifted base from Kolkata to New Delhi in 1972  Launched Hajmola tablet in 1978 DABUR -THE BRAND
  3. 3. Corporate Governance?????  Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders ..also the structure through which objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.”  Corporate governance is a multi-faceted subject. An important theme is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem.  It is a system of structuring, operating and controlling a company
  4. 4. Corporate Governance Framework
  5. 5. Corporate Governance –Dabur way  Committed to good Corporate Governance benchmarked itself in line with global practices.  Understands and respects its fiduciary role in the corporate world  This attitude has earned recognition and has strengthened its bond of trust with stakeholders and the society at large.  Has earned ICSI’s “Corporate Governance Excellence award in 2016”
  6. 6. Corporate Governance Philosophy o It is to achieve business excellence and optimize long term value for its shareholders on a sustained basis through ethical business conduct o Envisages attainment of transparency, accountability and equity
  7. 7. Some of the initiatives are:  Professionalization of the board  Lean and active Board (reduced from 16 to 10 members)  Less number of promoters on the Board  More professionals and independent Directors for better management  Governed through Board committees for Audit, Remuneration, Shareholder Grievances, Compensation and Nominations  Meets all Corporate Governance Code requirements of SEBI
  8. 8. Board of Directors:  The Board of Directors of the Company represents an optimum mix of professionalism, knowledge and experience.  The total strength of the Board of Directors of the Company are 12 members.  Besides Chairman, who is a Non-Executive Promoter Director, the Board comprises of three Executive Directors (of whom one is Promoter Director),two NonExecutivePromoter Directors and six Non- Executive Independent Directors.
  9. 9. Committee of Board Dabur consists of 4 committee  Audit Committee  Remuneration cum Compensation Committee  Shareholders/Investors Grievance and Share Transfer Committee  Nomination Committee
  10. 10. Audit Committee  Oversight of the Company's financial reporting process and disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.  Recommending to the Board the appointment, re- appointment and, if required, the replacement or removal of the statutory auditor and the fixation of audit fees.  Approval of payment to statutory auditors for any other services rendered by the statutory auditors
  11. 11. Remuneration cum Compensation Committee  Framing and implementing, on behalf of the Board and on behalf of the shareholders, a credible and transparent policy on remuneration of Executive Directors, including ESOP, pension rights and any compensation payment.  Considering, approving and recommending to the Board changes in designation and increase in salary of the Executive Directors.  Ensuring that the remuneration policy is good enough to attract, retain and motivate the Directors.
  12. 12. Shareholders/Investors Grievance and Share Transfer Committee  Transfer/Transmission of shares.  Split-up/Sub-division and Consolidation of shares.  Dematerialization/ materialization of Shares.  Issue of new and duplicate share certificates.  Registration of Power of Attorneys, Probate, Letters of Transmission or similar other documents
  13. 13. Nomination Committee  To identify and recommend suitable candidates to the Board of Directors for appointment as members of the Board.  To engage the services of consultants and seek their help in the process of identifying candidates for appointments to the Board.  • To decide the remuneration of consultants engaged by the Committee.
  14. 14. Conclusion  Corporate governance practices exert great influence on the performance of the company.  Shareholders should ensure that the composition of Board of Directors is a balanced mix of independent directors and management appointees. This would help keep a check on the internal processes of the company.  Companies which are having good governance practices will have good image among the investors and public as a whole.
  15. 15. THANK YOU!!!!

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