Board Structures in India, Evidence from Automobile and IT Companies
Vincent Konadu Tawiah (2014) Board Structures of Indian Companies, International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 2, Issue 2, pp: (55-63), Month: October 2014 - March 2015
9 Pages Posted: 8 Dec 2014
Date Written: October 1, 2014
Board of Directors have become central focus for every business due to their vital role of bridging the interest of shareholders and managers. With particular look at some Automobile and IT companies, this paper has analysed the board structures in terms of size, independency, chairmanship and promotership on the board. Using purposive sampling, 10 companies each were selected from Automobile and IT sectors and 10 years time series trend and cross sectional analysis was used to achieve the objective.
The study points out that, board size of selected companies did not change significantly over the period especially in the Automobile companies with about 80% maintaining same size over the decade. The Automobile companies had a median board size of 10-12 members while the IT companies had 10-11 members. 8 out of 10 companies never change their chairmanship in terms of person and category of director in both industries. 80% of the selected companies have non-independent chairmanship usually promoters meaning 50% of board members are independent. Few companies still have dual chairmanship over the period.
All companies have fulfilled the statutory requirement of clause 49 of the listing agreement over the period.
Keywords: Board of Directors, Chairman, Independent Directors and Promoters.
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