The fundamental concern of corporate governance is the implementation of responsible management, appropriate control of company and ensuring the accountability of the company’s directors and managers to the shareholders and other stakeholders.
EDCL seeks to promote excellent corporate governance based on internal criteria that conforms to best practice and exceeds statutory requirements.
EDCL has formal guidelines in place regarding board composition, attendance, compensation, compliance, external auditors, risk management and ethics. The formal guidelines are laid down in the Articles of Association, the charters of the board committees, the board membership guidelines, directives and the Code of Conduct.
The Company strongly believes that sound principles of Corporate Governance are an important key to success, as they enhance the ability to secure the confidence of its stakeholders. The Company’s Corporate Governance initiative is based on three core principles:
(i) The Management must have the executive freedom to drive the enterprise forward without undue restraints.
(ii) Freedom of Management should be exercised within a framework of effective accountability.
(iii) Management should be open, transparent and merit based.
EDCL’s principles and rules on Corporate Governance are aimed at sustainable growth in alignment with the highest ethical, social and environmental standards. The Code of Conduct reinforces the highest ethical standards required of the Board and senior management.