Monday, January 16, 2006
Dabur bags “Best Governed Companies” award for year 2005
Selected amongst 4,000 companies evaluated this year for this award
Award recognizes Dabur’s leadership effort and initiatives in practicing good governance
Dabur India has bagged the prestigious National Award for Excellence in Corporate Governance for the year 2005 awarded by Institute of Company Secretaries of India (ICSI). The award was given away by Mr Prem Chand Gupta, the Union Minister of State for Company Affairs, at a function in Mumbai on Friday.
“At Dabur, we believe good governance is key to a strong bond of trust between the company and all its stakeholders. This prestigious award recognizes the Boards commitment in adopting best corporate governance practices, at par with global standards, in the company,” said P D Narang, Group Director, Dabur India.
ICSI, on the basis of stringent stipulated parameters, evaluated 4000 companies who submitted their nominations and short-listed twenty five companies amongst the list for final selection. The jury, headed by V N Khara, former Chief Justice of India, then selected two BEST Governed Companies amongst these 25 companies for the award.
The selection criterion includes assessment of companies on the basis of their Board’s independence & Governance; Transparency and Disclosure Compliances; Consistent Stakeholders Value Enhancement; and Risk management Systems.
“The fundamental value proposition of the Board of Directors of Dabur India has been its commitment to maximizing shareholder value on a sustained basis. This value system translates into institutionalizing structures and procedures that enhance the effectiveness of the Board and inculcates a culture of transparency, accountability and integrity across the Company. Dabur has always volunteered and made concerted efforts to imbibe global best practices and standards of Corporate Governance. We would continue with these efforts in future as well” said Mr. Narang.
Corporate Governance initiatives
Dabur has always gone beyond merely meeting mandated regulations and made concerted efforts to imbibe global standards of Corporate Governance.
The company already has a majority of seven non-promoter directors – including Five independent directors - on its Board of 11 members. Of the remaining four promoter Directors on the Board, three Directors - the Chairman and the Vice-Chairman and one director - are all non-executive Directors. This composition of the Board has been in compliance with the Clause 49 of the Listing Agreement, much before it was mandated.
The Company’s sound governance practice is evident from the presence of individuals of high integrity and stature as independent directors on the Board.
The Company’s information disclosure standards in terms of its clear demarcation of Board and management’s responsibilities, clear responsibilities of the Chairman and CEO, Remuneration policy, financial performance, ownership pattern, shareholders rights and Board membership criteria traverses a long way in establishing Dabur’s commitment towards good Corporate Governance.
Background to the Award
ICSI instituted the “ICSI National Award for Excellence In Corporate Governance” in the year 2001 to fulfill the twin objectives of creating wide spread consciousness towards corporate governance among the Indian corporate citizens and to reward excellence in the practice of good governance. The awards are an attempt to identify, foster and reward the culture of globally acceptable standards of corporate governance among Indian companies.
For Details :
Dabur India Limited
PH:- 95120-3982000, 3001000 extn 2101/2547