Dr. J J Irani speaks at IIM Indore’s 12th Foundation Day

Indian Institute of Management Indore marked the celebration of its 12th Foundation Day through a series of events on October 2-3, 2011. First in the series was the inauguaration of IIM Indore’s Sports Complex by Shri L.N. Jhunjhunwala, Chairman, Board of Governors, IIM Indore followed by feliciation of IIM Indore’s employees who have been contributing to the sustained growth and development of the Institute for the past 10 years and staging of Asghar Wajahat’s popular Hindi play- Jis Lahore Nai Dekhya ("One who has not seen Lahore").

Dr. Jamshed J Irani, popularly known as Dr. J J Irani shared his vast corporate experiene in his thought provoking lecture on the theme Corporate Governance through the lens of an Indian Corporate.

Dr. Irani spent over four decades with Tata Steel and turned a weary workforce into an enviable asset and a tired company into an absolute winner. A board level director with several companies as well as institutions and trade bodies, Dr. Irani, a steel and metals industry veteran, was awarded Padma Bhushan in 2007.

He said that good corporate governance would ensure the credibility of any company and was happy to note that more and more companies in India are now adopting to good governance practices. While narrating several examples that he experienced while he was with Tatas and other industrial bodies, Dr. Irani suggested the following measures to improve corporate governance in the country:



* The corporates should improve their own codes of governance and individuals with doubtful track records should be sidelined.



* The offices of Chairman and CEO should be separated.



* Actively seek to appoint “Non-Compliant” Independent Directors to the Board, preferably through a “Nominations Committee” of the Board (comprising largely of Independent Directors). Similarly appointment of Statutory Auditor would be through the Audit Committee of the Board.



* Encourage Independent Directors to meet among themselves and convey their views to the Management, either individually or through a “Lead Director”.



* Seek a law which would protect the Independent Directors so that eminent persons of good repute do not hesitate to join Corporate Boards through fear of biased/unfair persecution.



* Make the Internal Audit function as independent as possible (The Chief of Internal Audit to report to the Chairman of the Audit Committee).





* Encourage the Board’s Audit Committee (Composed entirely of Independent Directors) to function effectively and efficiently. The CEO should not be a regular member and may be summoned to attend whenever required.



* The Industry Associations (like CII, FICCI etc) should express their disapproval of an “inappropriate development” not only through statements, but by acting against their defaulting member more effectively (e.g. suspension of membership). ‘Peer pressure’ is a very effective deterrent to “potential defaulters”.



* Encourage a confidential “Whistle Blower” policy/system.



* Discourage the building up of a “nexus” between the Top Management and the Political set up.



About 700 people attended Dr. Irani’s lecture which included students, faculty, staff members and guests.

The two-days long Foundation Day celeberation was concluded with a dance programme on "Paramparik Kathak - Navrang" by Kartik Kala Academy reflecting different shades of classical music.

For further details, please contact:

Akhtar Parvez

Indian Institute of Management, Indore

Prabandh Shikhar
Rau-Pithampur Road
Indore - 453 331
Phone: +91-731-2439626; 2439666
Mobile: +91-7389906902