Corporate Governance Norms for SME
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Transcript of Corporate Governance Norms for SME
Corporate Governance Norms for SME
Dr. Indrajit DubeDean, RG School of IP Law
Indian Institute of Technology Kharagpur
About My Law School at IIT
• IThas beenestablished four years back with the generous donation of Mr. Vinod Gupta, a illustrious alumni and business magnet of USA.
• The objective of the school is to promote legal education interfacing with Technology and Management.
• At present the school runs an executive program called LL.B [Specialization in IPR] and a research program [Ph.D].
• The School also carries multi – disciplinary action research.
About the theme
• Times editor commented in an interview with NDTV that India is not affected to that extent in the global recession because of its micro-economic structure and SME.
• According to me, SME will be driving factorofour economy in coming days.
• To achieve that end, SME should be transformed from ‘informal organizational form ’ to ‘formal organizational form’.
Issues SME faces
• Inadequate public support and infrastructure facility
• Deficiency in organizational planning and modeling
• Organizational succession plan• Ignorance and inability of risk management
The Present Research was Funded by National Foundation for
Corporate Governance [NFCG]
About Research• Time frame : About twenty months• Universe :
» Geographically entire India» Strata broadly divided in Production and Service
Enterprises
• Sample Method: Random • Sample Size: Two thousand two hundred and
eleven• Research Tools:
» Schedules administered in person» Schedule administer through web» Interview
Findings of Primary Survey
Findings of Primary Survey
Findings of Primary Survey
Findings of Primary Survey
Why and What
• SME to be a partner to the inclusive growth• Better organizational structure, better credit
worthiness, better employer, better contributor in economic growth
• Draw a succession plan for sustainable growth
Corporate Governance based on stakeholder approach not on agency problem
Recommended Corporate Governance Norms for SME’s
• Prepare and Publish ‘Mission Statement’ of Enterprises• Enterprise Policy Statement to Manage Business Growth • Enterprise Succession Plan • Annual Management and Accomplishment Statements• Management Structure and Level of Professional Qualification
as relevant to Industry• Method of accounting and disclosure of audited account• Stakeholder relations and welfare undertaken by the
enterprise• Legal and regulatory Compliances
Thank you