Voices of Change 5: Sanjeev Jain, Business Transformation Expert & Board Advisor
Sanjeev Jain is a board director on multiple companies, and an Independent Director, with expertise in Business Transformation, SME IPO, Investor Relations, ESG, and JITO. He is also Managing Partner at Amicus Growth Advisors
Our team spoke to him recently on corporate governance and independent directorship. Here are the excerpts from the interview:-
1: Improving Corporate Governance Practices
As an independent director, I believe that our role is crucial in ensuring that companies adhere to the highest standards of corporate governance. To improve corporate governance practices, independent directors can:
- Provide objective and unbiased guidance
- Bring diverse perspectives and expertise
- Ensure transparency and accountability
- Foster a culture of compliance and ethics
-Facilitate a Frank discussion on any governance issue while adopting an uncompromising stand on such matters
Example: In one of the companies I am associated with as an independent director, we implemented a whistleblower policy, which encourages employees to report any unethical practices anonymously. This has helped in identifying and addressing potential governance issues promptly.
2) Learning from M&A Background
My experience as an Executive Director at GATI and involvement in M&A activities has taught me the importance of:
- Strategic planning and due diligence process to identify potential risks
- Cultural integration and change management
- Identifying synergies and maximising value creation promptly
-Negotiation and legal drafting skills
- Tax and corporate structuring
One key learning is that successful M&A is not just about financial engineering, but also about people and cultural integration. Ensuring that the acquired company’s employees are engaged harmoniously and aligned with the new vision and values is crucial for long-term success. An M and A project may not achieve its stated objectives In the absence of successful integration at all levels be it at business/operation or people!
3: Enhancing Board Governance and Leadership
To enhance board governance and leadership in the Indian corporate world, I suggest :
- Regular board evaluations and training
- Diverse board composition with expertise and experience
- Clear roles and responsibilities for the board and management
- Encouraging active engagement and constructive dissent
- in an ideal situation, the Chairman to be an independent director
- Greater focus on conflict of interest issues and expeditious resolution
- Presentation by statutory auditors to the Board on audit and their observations
- Interaction with internal Auditors and secretarial Auditors
- Strengthening of sub Committees of the board, especially Audit committee and NRC committee.
Additionally, boards should focus on long-term sustainable growth, rather than just short-term gains. This requires a balanced approach to financial performance, social responsibility, and environmental sustainability in terms of meeting company obligations towards ESG.
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