| MTNL
has been following the principles of Corporate Governance.
As it is understood, the principles and Corporate
Governance deals with laws, procedures, practices and
implicit rules that determine a company's ability to take
informed managerial decisions vis-à-vis its stake
holders, in particular its shareholders, creditors,
customers, the state and employees.
The
major constituents/components of Corporate Governance
include :
1)
Constitution of the Board of Directors.
2)
Key information that are being reported to and are placed
before the Board of Directors.
3)
Proper functioning of Audit Committee.
4)
Transparency and desirable disclosures by the company.
At
present, MTNL Board comprises of four non-executive
Directors, apart from three full time Directors viz.
Director (Tech), Director (Fin) & Director (HR) and
two ex-officio Directors on Board. There are two Govt.
nominees on the Board. The meetings of the Board are held
regularly, as per the agenda and their importance. Besides
regular Board Meeting, emergency Board meetings are held
as and when required. The information, which are reported
to and placed before the Board includes: -
1) Annual Plans, revenue, capital budgets, manpower and
over-head budgets and manpower
requirements.
2)
Quarterly results of the company as a whole and its
operating divisions.
3)
Internal audit reports.
There is a separate Internal Audit group formed
& functioning in the company under whose jurisdiction
member of independent Chartered Accountants Firms are
appointed by the company to carry out audit of various
departments of the company both in Delhi & Mumbai as
well as Corporate Office.
Apart
from the internal audit, the company is also subjected to
Govt. Audits and other audits/examination by Parliamentary
Committees. Company has to report its monthly, quarterly
and yearly achievements in terms of financial and physical
parameters to DoT and Department of Public Enterprises (DPE).
Hence,
it can be seen that the company functions in a most
transparent manner. Two most important claimants to any
company are creditors and shareholders and the Corporate
Governance and good corporate practice must satisfy both
these claimants. In this regard, MTNL, a debt free
company, has a unique distinction of servicing its
shareholders. The
company has evolved its own “Insider Trading Code” as
per SEBI Rules & Regulations.
CORPORATE GOVERNANCE PRACTICES/STANDARDS
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