100th Annual Report 2006-2007 - Tata Steel
100th Annual Report 2006-2007 - Tata Steel
100th Annual Report 2006-2007 - Tata Steel
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Hundredth annual report <strong>2006</strong>-07<br />
Corporate Governance <strong>Report</strong> for the year <strong>2006</strong>-07<br />
(as required under Clause 49 of the Listing Agreements entered into with the Stock Exchanges)<br />
1. The Company’s Corporate Governance Philosophy<br />
The Company has set itself the objective of expanding its capacities and becoming globally competitive in its<br />
business. As a part of its future growth strategy, the Company believes in adopting the ‘best practices’ that<br />
are followed in various geographies, in the area of Corporate Governance. The Company emphasises the<br />
need for full transparency and accountability in all its transactions, in order to protect the interests of its<br />
stakeholders.<br />
The Board considers itself as a Trustee of its Shareholders and acknowledges its responsibilities towards them<br />
for creation and safeguarding Shareholders’ Wealth. During the year under review, the Board continued its<br />
pursuit of achieving these objectives through the adoption and monitoring of corporate strategies, prudent<br />
business plans, monitoring of major risks of the Company’s business and ensuring that the Company pursues<br />
policies and procedures to satisfy its legal and ethical responsibilities.<br />
2. Board of Directors<br />
The Company has a non-executive Chairman and the number of Independent Directors is more than one-third of<br />
the total number of Directors. The number of Non-Executive Directors (NEDs) is more than 50% of the total<br />
number of Directors.<br />
None of the Directors on the Board is a Member on more than 10 Committees and Chairman of more than 5<br />
Committees (as specified in Clause 49), across all the companies in which he is a Director. The necessary<br />
disclosures regarding Committee positions have been made by the Directors.<br />
The names and categories of the Directors on the Board, their attendance at Board Meetings during the year<br />
and at the last <strong>Annual</strong> General Meeting, as also the number of Directorships and Committee Memberships held<br />
by them in other companies are given below:<br />
Name Category No. of Whether No. of No. of Committee<br />
Board attended Directorships positions held<br />
Meetings AGM held in other in other<br />
attended on 5th public companies public companies**<br />
during July, <strong>2006</strong> as on 31.3.<strong>2007</strong> as on 31.3.<strong>2007</strong><br />
<strong>2006</strong>-07<br />
Chairman Member Chairman Member<br />
Mr. R. N. <strong>Tata</strong> (Chairman) Professional 11 Yes 11 2 — —<br />
Not Independent<br />
Non-Executive<br />
Mr. Nusli N. Wadia<br />
Independent<br />
Non-Executive 7 No 5 4 — —<br />
Mr. S. M. Palia -do- 10 Yes — 8 3 2<br />
Mr. P. K. Kaul -do- 1 No NA NA NA NA<br />
Financial Institutions’<br />
Nominee* (Expired on<br />
28th February, <strong>2007</strong>)<br />
Mr. Suresh Krishna -do- 6 No 5 2 2 2<br />
Mr. Kumar Mangalam Birla -do- — No NA NA NA NA<br />
(Ceased to be a Director<br />
w.e.f. 14.08.<strong>2006</strong>)<br />
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