It becomes relevant considering IRDAI has been laying enormous stress on Corporate Governance through its guidelines in 2009.They were again revised from 1/4/2016 considering the changes to governance of companies brought about by the Companies Act, 2013.
One of the key features of the revised Guidelines is the role of the Board Committees as follows:
"Board Committees - Boards of insurance companies must constitute the following committees mandatorily – Audit; Risk Management; Investment; Policyholder Protection; Nomination & Remuneration (N&R); Corporate Social Responsibility (If the company posts profits)."
Now the question that arises is to what extent the Board Committees will come into play while considering the IDBI Bank deal in the LIC's Board Meeting for deciding on the proposal for evaluating the impact of any decision taken on the interests of the various stakeholders.
We need to wait and watch for further developments which seem to be moving on predictable lines.
Greetings.
C H Mahadevan
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