GAIL India to set up ethics committee
In a first of its kind, state-run gas utility GAIL India said that it has decided to constitute an ethics committee of the board to prevent Satyam-kind scandals.business Updated: Jan 29, 2009 19:04 IST
In a first of its kind, state-run gas utility GAIL India on Thursday said it has decided to constitute an ethics committee of the board to prevent Satyam-kind scandals.
"The ethics committee will be the conscience keeper for the company and will act as a watchdog for corporate governance," GAIL India Chairman and Managing Director UD Choubey told reporters in New Delhi.
The panel will comprise of the company's independent directors and one of the two government nominees on its board.
"It will deal with all aspects of ethics in the company and suitably evolve its procedures," he said.
Neither the chairman nor any of the functional directors would be members of the ethics committee. The recommendations of the ethics committee shall be put up to the board for deliberations and taking a final view.
Some of the aspects to by covered by the committee include no conflict of interest, fair play, integrity and accountability, protection of corporate interest and its assets, transparency in disclosures of revenue, expenses and investments, legal compliances, propriety and confidentiality.
"The step has been taken to strengthen the corporate governance in the conduct of business and to cater to the need of stricter code of ethics," he said.
GAIL already has an audit committee in place, in compliance with the provisions of the listing agreement. Besides, a code of conduct for board members and senior management personnel is already in place.
"The ethics committee shall work as conscience keeper and submit to the board any recommendation for best corporate governance in the company," Choubey added.