The International Finance Corporation (IFC) has published an article entitled “Board Evaluations: Insights from India and Beyond” by Dr Mary Jo Larson (Associate of GGS) and Dr Chris Pierce (CEO of GGS) in which they examine features of Board evaluation and the challenges now facing Boards in India and beyond.
The amendments to the Indian Companies Act in 2014 considerably raised the bar for corporate governance in Indian companies, by introducing the requirement for a mandatory Board evaluation for every listed company and other public company with a paid-up capital of Rs 25 crore or more (approximately US$ 4 million). Mary Jo and Chris write about the logic behind the concept of Board evaluation, its benefits, and how Boards can undertake the process in a productive manner. They illustrate their points of view by using examples from India.
Topics in the article include:
- Incentives for Board evaluation
- Extent of Board evaluation globally
- Significant requirements in India
- Predictable barriers and challenges
- Case example of Board leadership from India
- Recommended practices worldwide
- Future trends and challenges
The article may be downloaded here: