IICA Launches 3-Day Directors’ Certification Master Class in Ooty to Elevate Corporate Governance

Sound Corporate Governance: The Bedrock of a Progressive Corporate Ecosystem

The Indian Institute of Corporate Affairs (IICA), the premier think tank under the Ministry of Corporate Affairs, Government of India, inaugurated its Directors’ Certification Master Class in Ooty, Tamil Nadu, on 10th July 2024. The Master Class, spanning three days from 10th to 12th July, aims to enhance the corporate governance acumen of over 50 participants representing the boards of leading organizations across India.

Inaugural Session Highlights

The inaugural session featured esteemed attendees including:

• Dr. Ajay Bhushan Pandey, Chairman of the National Financial Reporting Authority (NFRA) and the Director General & CEO of IICA
• Ms. Neera Saggi, Independent Director on the boards of Tata Steel and GE Power
• Mr. Shailesh Haribhakti, Board Chairman, Audit Committee Chair, and Independent Director in several leading organizations

Dr. Ajay Bhushan Pandey opened the session by emphasizing the critical role of corporate governance in fostering a robust corporate sector. He introduced a new collaborative initiative between IICA & NFRA designed to launch specialized training modules for accounting professionals, auditors, and independent directors. “Sound corporate governance is the bedrock of a robust corporate sector,” Dr. Pandey stated, highlighting its indispensable role in sustainable growth.

Keynote Address by Dr. Ajay Bhushan Pandey

In his keynote address, Dr. Pandey underscored the pivotal role of corporate governance in today’s economy and society. He highlighted the importance of audit committees and independent auditors in upholding corporate integrity and sustainability. Drawing on historical cases such as Kreuger & Toll and McKesson & Robbins, he illustrated the evolution of regulatory frameworks over time.

Dr. Pandey delineated five key defenses in corporate governance:

• Management
• Audit Committees and Independent Directors
• Financial Reporting Frameworks and Auditors
• Investors/Shareholders and Lenders
• Independent Regulators like NFRA

He urged audit committees to engage deeply with key audit standards and regularly review NFRA disciplinary orders to maintain high standards of corporate governance.

Focus on Key Audit Matters (KAM) and Emphasis of Matters (EOMs)

Dr. Pandey emphasized the significance of Key Audit Matters (KAM) & Emphasis of Matters (EOMs), advocating for proactive engagement with auditors to ensure transparent reporting. He reiterated the primary responsibility of corporate boards to protect shareholders’ interests & ensure good governance. Dr. Pandey recommended directors familiarize themselves with NFRA’s review reports and disciplinary orders. Citing Healy and Palepu from Harvard Business School, he suggested evolving audit committees into ‘transparency committees’ to provide investors with a clearer understanding of a company’s economic reality.

Specialized Training Modules for Auditors and Directors

The specialized training modules developed by IICA and NFRA are designed to meet the continuing professional learning requirements for chartered accountants. These courses prepare auditors and independent directors to manage large companies with diverse shareholder bases and adhere to global standards. The training includes:

• Nine-month courses for auditors and accountants, featuring online classes held two to three days a week.
• Shorter courses for independent directors lasting three to six months.
• Developed with input from top industry experts, these courses aim to provide practical and valuable learning experiences.

Distinguished Speakers and Industry Experts

The Directors’ Certification Master Class features sessions led by renowned speakers and industry experts, including:

• Mr. Nawshir Mirza, Independent Director at Thermax Ltd.
• Mr. Vivek Talwar, Former Chief Sustainability Officer at Tata Group
• Mr. Puneet Gupta, Managing Director at Protiviti India
• Dr. Anil Kumar, Independent Director at LIC of India
• CA Mohan R. Lavi, Board Advisor
• Dr. Mahendra Chouhan, Former Chairman of Fino Payments Bank
• Mr. Nagendra Rao, Past President of ICSI
• Mr. PS Jayakumar, Former MD & CEO of Bank of Baroda

Leadership and Program Execution

The three-day program is spearheaded by Dr. Niraj Gupta, Head of the School of Corporate Governance & Public Policy (SoCGPP) at IICA, with the support of Mr. Manoj Singh and Mr. Mathew John, Chief Program Executives at IICA. The program aims to foster an environment of learning and collaboration, equipping participants with the knowledge and skills necessary to excel in their roles as directors and governance professionals.

In Conclusion, The Directors’ Certification Master Class in Ooty represents a significant step towards enhancing the quality of corporate governance in India. By bringing together industry leaders and experts, IICA continues to contribute to the development of a robust corporate ecosystem, ensuring transparency, accountability, and sustainable growth in the corporate sector.