In response to the ministry of corporate affairs letter to the Institute of Company Secretaries of India (ICSI) to investigate issues related to corporate governance aspect in the Satyam accounting fraud, the ICSI council has constituted a core group to look into the matter.
In order to prevent Satyam like issues in future, the institute will make a change in the present policy framework, which will be a change in the existing Company Secretary Act 1980.
Apart from this, letters have also been sent to the two company secretaries of Satyam, G Jayaraman, global head of corporate governance of Satyam and Savita Jyoti, practising company secretary of Satyam to give their comments about the various issues raised by the government and to their role in the whole process.
ICSI president Datla Hanumanta Raju said in case any of our members is found guilty of any misconduct, within the framework of Company Secretaries Act 1980, then stringent disciplinary action will be taken against the erring member which includes removing his name from the list of members of ICSI and pecuniary fines.
ICSI CEO and Secretary NK Jain told FE this core committee has been formed to delve into various Satyam issues. The institute has made sure that this core group will come out with its results as early as possible.
The group consists of seven council members of ICSI and is free to consult and seek advice of outside experts.
Jain said, “We need to identify the role of company secretaries in this scandal and build an adequate framework in place to prevent re-occurrence of such episodes in future and to further strengthen the existing framework.”
