Only 5 of NSE100 firms have disclosed result of board evaluation: IiAS-NSE research

MUMBAI: More and more companies are undertaking the board evaluation process mandated by the Companies Act 2015 but most of the companies are staying away from disclosing the outcomes, said a joint research by NSE and Institutional investor Advisory Services (IiAS) said Thursday.

Only 5 of the 100 NSE 100 companies disclosed the outcome of evaluation carried out by the companies. The 5 companies that have disclosed the results of the board evaluation process are Hindalco, Federal Bank, RIL, TVS Motors and Maruti Suzuki.

Hindalco rated 100% on its board functioning, skill sets and working atmosphere. Federal Bank gave detailed evaluation outcome of board/committees. RIL disclosed the evaluation results that were benchmarked with database of 1,000 other board surveys. TVS Motors’ board is well balanced in terms of diversity of experience, the research added and Maruti Suzuki’s directors were diligent, meticulous and faithful in the performance of their duties.

However, increasingly more Indian companies seem to undertaking board evaluation practices.

The research focused on the practices adopted by the top 100 listed companies. According to the findings of the research number of 84 companies (out of 100) evaluated their Individual directors, 83 companies evaluated their board committees, 84 companies evaluated their entire board and about 70 companies evaluated their chairperson in 2016. The figures were a tad lower in 2015. 39% of companies have shown changes in disclosure levels, the report added.

Increasingly more companies are also seeking the help of the professionals. Companies are beginning to use external professionals to support the board evaluation effort, the research said.