Governance Current Affairs - 2019
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Tata Steel has been recognised as one of World’s Most Ethical Companies by the Ethisphere Institute for 2019. Ethisphere Institute is a global leader in defining and advancing the standards of ethical business practices.
For the eighth time, Tata Steel has got the recognition eight times in the ‘Metals, Minerals and Mining’ category. Tata Steel is one of the only two honorees in the ‘Metals, Minerals and Mining’ industry.
World’s Most Ethical Companies 2019
128 companies are recognized for exemplifying and advancing corporate citizenship, transparency and the standards of integrity in the year 2019.
The honorees are from 21 countries and 50 industries. The list includes 16 first-time honorees and eight companies that have been named to the list every year since 2007.
The companies are listed World’s Most Ethical Companies based on their score in the Ethisphere’s Ethics Quotient which collects and objectively scores self-reported data in five weighted categories namely:
- Leadership and Reputation
- Ethics Compliance Programme
- Culture of Ethics
- Corporate Citizenship and Responsibility
The other Indian company to find a place in the list of World’s Most Ethical Companies 2019 is Wipro.
Tags: Ethics • Ethisphere Institute • Ethisphere’s Ethics Quotient • Governance • Tata Steel
The Reserve Bank of India (RBI) has proposed setting up of Board of Management (BoM) in all Urban Co-operative Banks (UCBs) having deposits of over Rs 100 crore within one year to strengthen governance and promote professional management in these banks.
BoM will be in addition to the Board of Directors (BoD). The BoD will continue to be apex policy setting body and constitute various committees of board including BoM to assist it to carry out its functions.
Functions: BoM will look after all administrative functions of UCBs as spelt out in respective Co-operatives Act. It will be responsible for credit, risk and liquidity management of UCBs. It will consider loan proposals, recommend action for recovery of bad loans, implement sound internal controls and oversee compliances, among others.
Composition: BoM will be constituted by BoD. BoM will have minimum of 3 members in UCBs having deposit size up to Rs 100 crore and 5 members in UCBs having deposit size above Rs 100 crore. The maximum number of members in BoM will not exceed 12. Not more than 50% of BoM members should be from BoD. Under all circumstances, BoM should have atleast two members outside from BoD.
Criteria: 50% of the members of BoM will consists of persons having special knowledge or practical experience in respect of one or more of the following matters such as accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law, small scale industry, information technology and other matter the special knowledge useful to UCB.
Implementation: Existing UCBs having deposit size exceeding Rs 100 crore will set up BoM within period of 1 year and banks less than it may constitute BoM within 2 years.
The expert committee on licensing new urban co-operative banks (2010) constitued under chairmanship of YH Malegam had recommended that BoM should be constituted in every UCB, in addition to BoDs. This was reiterated by high powered committee on UCBs headed by R. Gandhi constituted in January 2015 by RBI. Under the present legal framework, BoD of UCB performs both executive and supervisory roles and has responsibility to oversee functioning of UCB as cooperative society and as a bank.