Corporate governance changes suggested for India

A corporate governance expert has made a series of recommendations on how to improve the transparency and accountability of companies in India.

Writing in the Hindu, corporate lawyer LVV Iyer suggested strengthening the role of auditors, ensuring board appointments include genuinely independent directors and removing perceived threats to whistleblowers.

He said the "pivotal role" played by auditors in maintaining corporate governance standards has been in the spotlight since the Satyam accounting fraud scandal of 2009.

"Today is a great opportunity for the auditing profession to rise to the occasion with a transformative change," Mr Iyer commented.

He called for an anonymous whistleblowing mechanism to help identify instances of bad practice and financial mismanagement, while also claiming that audit committee chairman should promote "informal whistleblowing".

Mr Iyer said such corporate governance improvements will become increasingly important as India emerges as an "economic powerhouse" on the global stage.

The Indian economy surpassed expectations by posting year-on-year growth of 8.9 per cent in the third quarter of 2010, according to new data.