CONFEDERATION OF INDIAN INDUSTRIES (CII) CODE FOR DESIRABLE CORPORATE GOVERNANCE
The CII code has recommended the following 14 key aspects which should be shared with the
board :
» Annual operating plans and budgets together with updated long-term plans.
» Capital budgets, manpower and overhead budgets.
» Quarterly results for the company as a whole and its operating divisions for business segments.
» Show cause, demand and prosecution notices received from the revenue authorities which are
considered to be materially important.
» Internal audit reports, including cases of theft and dishonesty of a material nature.
» Fatal or serious accidents, dangerous occurrences, and any affluent or pollution problems.
» Default in payment of interest or nonpayment of the principal on any public deposit, and/or to
any secured creditors or financial institutions.
» Defaults such as nonpayment of inter-corporate deposits by or to the company, or materially
substantial non-payments for goods sold by the company.
» Any issue which involves possible public or product liability claims of a substantial nature, including
any judgment or order which may have either passed, strictures on the conduct of the company,
or taken an adverse view regarding another enterprise that can have negative implications for
the company.
» Details of my joint venture or collaboration agreement.
» Transactions that involve substantial payment towards goodwill, brand equity, or intellectual
property.
» Recruitment and remuneration of senior officers just below the board level, including appointment
or removal of the Chief Financial Officer and the Company Secretary.
» Labour problems and their proposed solutions.
» Quarterly details of foreign exchange exposure and the steps taken by management to limit the
risk of adverse exchange rate movement, if material.
These issues can be classified into financial issues and non-financial issues which are not required to be
presented to the Board statutorily
Explaining the nature of key information that should reach board as per CII Code.
Financial Issues :
» Operating plans and budgets
» Capital budgets
» Quarterly results as a whole and by business segment
» Joint venture and collaboration
» Foreign exchange exposures
» Defaults in payments
» Failure in collection
Non-Financial Issues :
» Internal audit report
» Fatal accidents
» Show causes, contingencies, claims, Labour problems
» Important recruitments.
The CII code has recommended the following 14 key aspects which should be shared with the
board :
» Annual operating plans and budgets together with updated long-term plans.
» Capital budgets, manpower and overhead budgets.
» Quarterly results for the company as a whole and its operating divisions for business segments.
» Show cause, demand and prosecution notices received from the revenue authorities which are
considered to be materially important.
» Internal audit reports, including cases of theft and dishonesty of a material nature.
» Fatal or serious accidents, dangerous occurrences, and any affluent or pollution problems.
» Default in payment of interest or nonpayment of the principal on any public deposit, and/or to
any secured creditors or financial institutions.
» Defaults such as nonpayment of inter-corporate deposits by or to the company, or materially
substantial non-payments for goods sold by the company.
» Any issue which involves possible public or product liability claims of a substantial nature, including
any judgment or order which may have either passed, strictures on the conduct of the company,
or taken an adverse view regarding another enterprise that can have negative implications for
the company.
» Details of my joint venture or collaboration agreement.
» Transactions that involve substantial payment towards goodwill, brand equity, or intellectual
property.
» Recruitment and remuneration of senior officers just below the board level, including appointment
or removal of the Chief Financial Officer and the Company Secretary.
» Labour problems and their proposed solutions.
» Quarterly details of foreign exchange exposure and the steps taken by management to limit the
risk of adverse exchange rate movement, if material.
These issues can be classified into financial issues and non-financial issues which are not required to be
presented to the Board statutorily
Explaining the nature of key information that should reach board as per CII Code.
Financial Issues :
» Operating plans and budgets
» Capital budgets
» Quarterly results as a whole and by business segment
» Joint venture and collaboration
» Foreign exchange exposures
» Defaults in payments
» Failure in collection
Non-Financial Issues :
» Internal audit report
» Fatal accidents
» Show causes, contingencies, claims, Labour problems
» Important recruitments.
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