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Abstract
The article focused on the effectiveness of implementation of principles and practices of corporate Governance in Defence PSEs, as it is expected by Regulators and stakeholders. Corporate Governance is an ethical attitude. A questionnaire is developed to elicit the views of key executives functioning in eight DPSEs, to examine (1) whether Board systems and procedures in DPSEs enhanced compliance, transparency and disclosures required under corporate governance guidelines; (2) to study the role of independent directors in DPSEs with reference to their appointment, selection and procedure norms, Role and responsibilities, Level of independence, and Compensation package; and (3) To study the effectiveness of implementation of principles and practices of corporate governance in DPSEs. It is observed that Defence PSEs are adopting core values of corporate governance. The Board systems and procedures adopted by DPSEs were adequate and commensurate with their size of operations. They are in line with guidelines of DPE, SEBI and Companies, Act, 1956/2013. The contributions and role of independent directors are effective in DPSEs. Induction of foreign experts on the boards of DPSEs is not preferred. In spite, there is room for improvement in the spirit of corporate governance practices in the present day competitive environment, the implementation of Corporate Governance is effective both in letter and spirit in eight DPSEs though individual scores varied due to inherent nature and size of operations.
Keywords: Corporate failures, Corporate Governance, DPSEs, Regulators, Stakeholders.
(ProQuest: ... denotes formulae omitted.)
Introduction: There were about 225 operating Central Public Sector Enterprises, (CPSEs) as on 31st March, 2012. Some of them do not make enough profits or make marginal profits, due to inherent weaknesses of the public enterprise system in India. It is imperative for them to maintain ethics, probity, and public accountability in their functioning. A good management system needs to be developed which has an inbuilt mechanism of adhering to best corporate governance practices. Towards this end, DPE has formulated guidelines on corporate governance for implementation by CPSEs so that the interests of all interested would be protected.The effectiveness of implementation of corporate governance practices in Defence Public Sector Enterprises (DPSEs) in India was examined in this article.
Review of Literature - Corporate Governance - National and International Perspectives
Corporate governance is a multi-faceted...