This document summarizes the key points from the Naresh Chandra Committee report on corporate governance from 2002 presented by Sahana Hiremath. The report discusses how Kautilya's views on governing a monarchy can apply to successfully running modern corporations. It recommends strict corporate governance to build confidence among stakeholders. The report proposes establishing independent quality review boards to examine audit, secretarial, and cost accounting firms. It defines independent directors and recommends at least 50% of board members be independent. It also recommends exempting independent directors from certain civil and criminal liabilities and training programs for independent directors.

1. NARESH CHANDRA Committee
REPORT 2002
PRESENTED BY:
SAHANA HIREMATH
M.COM III Sem

2. CORPORATE GOVERNANCE
IN THE EYE OF KAUTILYA

•
Kautilya’s view regarding governing a
monarchy is equally applicable in
successfully running a corporate sector in
modern business context.
Strict Corporate Governance can win the
confidence of;
Government ,employees, customers &
other stakeholders

3. What is CORPORATE
GOVERNANCE?

4. NARESH CHANDRA
COMMITEE report
2002
ROAD TO CORPORATE
GOVERNANCE

5. RECOMMENDATIONS:
AUDITOR COMPANY
RELATIONSHIP
AUDTING THE AUDITORS
INDEPENDENT DIRECTORS
OTHER RECOMMENDATIONS

6. AUDITOR & COMPANY RELATIONSHIP
Certification of annual audited accounts by CEO &
CFO

7. AUDITING THE

8. SETTING UP THE INDEPENDENT
QUALITY REVIEW BOARD
There should be established, with
appropriate
legislative
support,
three
independent Quality Review Boards (QRB),
one each for the ICAI, the ICSI and ICWAI, to
periodically examine and review the quality of
audit, secretarial and cost accounting firms,
and pass judgement and comments on the
quality
and
sufficiency
of
systems,
infrastructure and practices.

9. PROPOSED DISCIPLINARY MECHANISM FOR THE
AUDITORS:
Dealing with the complaint cases
Disciplinary committee framed by ICAI
Publication of the punishment awarded
Funding

10. INDEPENDENT DIRECTORS

11. DEFINATION
• Free from business or any
other relationship with co.
PERECENTAGE
• 50% of directors have to
be independent directors
BOARD SIZE
• In all the listed & unlisted
co.s 4 out of 7 have to be
independent directors

12. AUDIT
COMMITEE
CHARTER
EXEMPTION
FROM CERTAIN
LIABLITIES
•
This will serve as the
Committee’s ‘action taken
report’ to the shareholders
• Exempted from civil &
criminal liability
• Training program for
TRAINING independent directors

13. THANK YOU
OPEN FOR QUERIES