Corporate Board Structure: A Key to Effectiveness of Corporate Governance in the Light of Sebi’s Lodr (a Case Study of Automobile Sector Companies Included in BSE Sensex)

Abstract

Board of Directors is the supreme body of any corporate house who plays a vital role in creating better environment for good Corporate Governance. The policy framing and process of decision making of a company depends on the size and structure of the board. The main aim of this paper is to focus light on the board structure, its strength and size of the automobile sector 5 companies included in BSE Sensex as per the requirements of LODR, 2015. The study shows that all companies comply the minimum requirement of NED as well as IDs in all the three years. All selected companies have one women director as per SEBI’s requirements. Bajaj Auto, Hero Moto Corp and Mahindra & Mahindra have ED as chairman. It is suggested that for more transparency above three mentioned companies should have non-executive chairman.