Corporate Governance and Disclosure Practices: A Study of SENSEX (Index) Companies

Abstract

Securities Exchange Board of Indian made revised Clause 49 of listing agreement mandatory for all the listed companies India from first January 2006, to protect the interest of various stake holders in the company. Clause 49 mandates that all listed companies have to disclose in its annual report a detail report on corporate governance disclosure practices they have followed. This study evaluates the corporate governance and disclosure practices followed by 30 SENSEX companies by examining the annual reports for financial year ended 31st march 2009. The major thrust of this study is on Composition of Board of Directors, Audit committee and shareholders Grievance committee. From this study it is observed that that corporate governance and disclosure practices followed by SENSEX companies are very good with exception just one or two items.