The proficiency self-assessment test instituted by the MCA is unlikely to provide any meaningful solution to board strengthening. There is no denying that boards in India need training but understanding technical subjects will not help directors in taking the right decision. Recent failures have given enough reason to believe that directors need to have greater awareness of their fiduciary responsibilities. Of the recent failures – several on account of corporate governance l

Twenty-two years after first committing itself to Milton Friedman’s mantra that the principal objective of a business enterprise is to generate economic returns to its owners, the US Business Roundtable has now given corporations a new purpose. In a statement in August, the Roundtable stated that purpose of the corporation is no longer maximizing returns to shareholders, rather it is a commitment to all stakeholders. This puts shareholders at par with employees, customers, su