Write a note on Desirable Corporate Governance Code promoted by Confederation of Indian Industry.

Confederation of Indian Industry (CII) took a special initiative on Corporate Governance, the first institution initiative in Indian Industry. The objective was to develop and promote a code for Corporate Governance to be adopted and followed by Indian companies, whether in the Private Sector, the Public Sector, Banks or Financial Institutions, all of which are corporate entities. This initiative by CII flowed from public concerns regarding the protection of investor interest, especially the small investor; the promotion of transparency within business and industry; the need to move towards international standards in terms of disclosure of information by the corporate sector and, through all of this, to develop a high level of public confidence in business and industry. The final draft of the said Code was widely circulated in 1997. In April 1998, the Code was released. It was called Desirable Corporate Governance: A Code. A list of the Desirable Corporate Governance Code is reproduced hereunder: Recommendation I - Frequency of Board Meetings Recommendation II - Board Composition Recommendation III - Number of Directorships Recommendation IV - Role, Responsibilities, Qualifications of Non-Executive Directors Recommendation V - Non-Executive Directors Recommendation VI - Disclosure of attendance record for re-appointment Recommendation VII - Key information to the Board Recommendation VIII - Audit Committee Recommendation IX - Disclosure on shareholders information Recommendation X - Consolidated Accounts Recommendation XI - Compliance Certificate Recommendation XII - Disclosure relating to GDRs Recommendation XIII - Funding Recommendation XIV - Nominee Director Recommendation XV - Disclosure of Ratings Recommendation XVI - Default on fixed deposits by company