Saturday, April 11, 2015

Public Sector Undertakings and Corporate Governance

The NSE Centre for Excellence in Corporate Governance (CECG) has issued its most recent quarterly briefing titled “Corporate Governance in State-Owned Enterprises”. The executive summary is as follows:

- State-Owned Enterprises (SOEs) constitute an integral part of India’s economy, and their performance has generally been encouraging;

- They are subject to stringent governance norms: those applicable to private sector companies and more;

- Although SOEs are owned by the government, their control, supervision and management are somewhat diffused;

- They suffer from unique issues and challenges in corporate governance;

- Nevertheless, through appropriate reforms in their governance, the benefits of SOEs to the economy can be maximized.

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