dabur corporate governance ppt

8/7/2019 dabur corporate governance ppt

1/15

Corporate governance of

Dabur

By :

Abhijeet Mehrotra

Ashish Nath Thakur


2/15

Established : 1884

Founder : Dr. S K Burman

Basic Motive : Manufacture of Ayurvedic Drugs Achieved : By setting up manufacturing units and

setting up Research and

Development Labs

Expanded its product line in the mid 1900s bylaunching Dabur Hair Oil and Chyawanprash

Added Oral Care Products in the 1970s

Shifted base from Kolkata to New Delhi in 1972

Launched Hajmola tablet in 1978

DABUR -THE BRAND


3/15

Corporate Governance?????

Corporate governance involves a set of relationships

between a companys management, its board, its

shareholders and other stakeholders ..also the structure

through which objectives of the company are set, and themeans of attaining those objectives and monitoring

performance are determined.

Corporate governance is a multi-faceted subject. An

important theme is to ensure the accountability of certainindividuals in an organization through mechanisms that try

to reduce or eliminate the principal-agent problem.

It is a system of structuring, operating and controlling a

company


4/15

Corporate Governance Framework


5/15

Corporate Governance Dabur way Committed to good Corporate

Governance benchmarked itself in

line with global practices.

Understands and respects its fiduciary

role in the corporate world

This attitude has earned recognition

and has strengthened its bond of trust

with stakeholders and the society atlarge.

Has earned Corporate Governance

Excellence award in 2005


6/15

Corporate Governance Philosophy

o It is to achieve business excellence and

optimize long term value for its shareholderson a sustained basis through ethical businessconduct

o Envisages attainment of transparency,accountability and equity


7/15

Some of the initiatives are:

Professionalization of the board

Lean and active Board (reduced from 16 to 10 members)

Less number of promoters on the Board More professionals and independent Directors for better

management

Governed through Board committees for Audit,

Remuneration, Shareholder Grievances, Compensation

and Nominations

Meets all Corporate Governance Code requirements of

SEBI


8/15

Board of Directors:

The Board of Directors of the Company represents an

optimum mix of professionalism, knowledge and

experience.

The total strength of the Board of Directors of the

Company are 12 members.

Besides Chairman, who is a Non-Executive Promoter

Director, the Board comprises of three Executive

Directors (of whom one is Promoter Director),twoNonExecutivePromoter Directors and six Non-

Executive Independent Directors.


9/15

Committee ofBoard

Dabur consists of 4committee

Audit Committee

Remuneration cum Compensation Committee

Shareholders/Investors Grievance and

Share Transfer Committee

Nomination Committee


10/15

Audit Committee

Oversight of the Company's financial reporting process

and disclosure of its financial information to ensure

that the financial statement is correct, sufficient and

credible.

Recommending to the Board the appointment, re-

appointment and, if required, the replacement or

removal of the statutory auditor and the fixation of

audit fees. Approval of payment to statutory auditors for any other

services rendered by the statutory auditors


11/15

Nomination Committee

To identify and recommend

suitable candidates to the Board

of Directors for appointment as

members of the Board.

To engage the services of

consultants and seek their help in

the process of identifying

candidates for appointments tothe Board.

To decide the remuneration of

consultants engaged by the

Committee.


12/15

Remuneration cum Compensation

Committee Framing and implementing, on behalf of the Board and on

behalf of the shareholders, a credible and transparent

policy on remuneration of Executive Directors, including

ESOP, pension rights and any compensation payment.

Considering, approving and recommending to the Board

changes in designation and increase in salary of the

Executive Directors.

Ensuring that the remuneration policy is good enough toattract, retain and motivate the Directors.


13/15

Shareholders/Investors Grievance

and Share Transfer Committee

Transfer/Transmission of shares.

Split-up/Sub-division and Consolidation

of shares.

Dematerialization/ materialization of

Shares.

Issue of new and duplicate share

certificates.

Registration of Power of Attorneys,

Probate, Letters of Transmission or

similar other documents


14/15

Conclusion

Corporate governance practices exert great influence

on the performance of the company.

Shareholders should ensure that the composition of

Board of Directors is a balanced mix of independent

directors and management appointees. This would help

keep a check on the internal processes of the company.

Companies which are having good governance

practices will have good image among the investorsand public as a whole.


15/15

THANK YOU!!!!

dabur corporate governance ppt

Documents

Transcript of dabur corporate governance ppt