New corporate governance charter for startups

Source-This post on New corporate governance charter for startups is based on the article “CII brings out new corporate governance charter for startups” published in “The Economic times” on 28th March 2024.

Why in the News?

Recently, The Confederation of Indian Industry (CII) has launched a corporate governance charter for startups.

About corporate governance charter for startups

1. About: Corporate governance charter was launched for startups to provide suggestions on corporate governance tailored for startups and offer guidelines suitable for different stages of a startup.

2. Launched by: It was launched by Confederation of Indian Industry (CII)

3. Aim: It will aim to enhance governance practices.

4. Role of the charter:

a) The CII Charter is crafted to assist startups in addressing governance requirements throughout their journey, spanning from establishment to public listing.

b) The tool allows startups to measure their governance progress, with score changes indicating improvements in governance practices as assessed against the scorecard from time to time.

c) The guidance provided to startups will be structured across four key stages: inception, progression, growth and going public.

Each stage emphasises particular governance principles that may need extra focus during that phase of the startup journey.

About Corporate governance:

1. Corporate governance in India is a set of rules, practices and processes by which a company is guided and controlled.

2. It ensures that the company is run in a fair manner to achieve the best interests of everyone associated with it.

UPSC Syllabus: Indian economy