The board observed that a matrix of expertise would make the board diverse and balanced for the effective functioning of a company. “There has to be transparency in board appointments and removal process and audit committee should focus on forward looking risk assessment in addition to retrospective evaluation,” pointed out the board members. 

Asserting that board evaluation was an important element in corporate governance, the members felt the process had to go beyond a box-ticking exercise and should be conducive to the growth of its company. “The best evaluation is an exercise in self-evaluation of the company’s performance and effectiveness in terms of its mission, financial returns, strategy, business model and social responsibility,” the statement said. The meeting also took note of the extant framework for investment advisory business, including the role of mutual fund (MF) distributors and regulatory arbitrage between the investment advisor and MF distributor providing advice.

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