Tag Archive for: CG Guidelines

Mahak Agarwal | corplaw@vinodkothari.com

Introduction

The Guidelines for Corporate Governance (‘2016 Guidelines’) for insurers in India have been around for close to a decade now. These Guidelines were initially brought as an update to the then 2009 Guidelines for the purpose of aligning the same with the extensive changes to the governance of companies brought about by the Companies Act, 2013. As such, the new Guidelines were framed to be mostly in line with the Act of 2013 except certain provisions such as requiring the CEO to be a WTD of the Board (where the chairman is NED), prescribing fit and proper criteria for directors, requiring certain additional committees, having only profit criteria for CSR applicability, etc.

Through the years, these Guidelines have served as a valuable source of direction in ensuring corporate governance for insurers; laying down guidance for the composition, roles and responsibilities of the Board, functions of various Board Committees, appointment and remuneration of KMPs, disclosures in financial statements, etc.