- Corporate Governance is a dynamic set of value driven principles and measures which steers an organization’s development in the right direction.
- It is based on the principles like Transparency, Fairness, Accountability etc.
- The charter has been released in the backdrop of significant erosion in shareholders’ value in Indian Startups due to governance failure in many high-profile Start-ups in the recent time.
- E.g. BharatPe, GoMechanic etc.
- Key Highlights of the Charter
- Objective: It will serve as a self-governing code for Startups (incorporated under the Companies Act, 2013).
- It will help start-ups in not only adding value but also in achieving stability, growth, resilience, competitiveness and long-term success.
- Guidelines for different stages of Start-ups: These include Inception Stage, Progression Stage, Growth Stage and Going Public Stage.
- For instance, it provides clear definition of role and responsibilities of members of the Board, directors etc. in Progression Stage.
- Online Self Evaluative Governance Scorecard- It can be used to measure their current governance status and improvement over time.
- Objective: It will serve as a self-governing code for Startups (incorporated under the Companies Act, 2013).
Key Legal Provisions
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