Write short notes on the following: Discuss the principle of Succession Planning based on Adi Godrej Committee Report.

Adi Godrej Committee was constituted by MCA to formulate a Policy Document on Corporate Governance. The committee's suggestions on the Succession planning were as under: The best way to ensure that a company does not suffer due to a sudden unplanned for gap in leadership is to develop an action plan for a successful succession transition. A plan should be put in place early, so it acts as a contingency in case an emergency requiring a sudden transition. Poor succession planning and time-consuming executive searches can dampen investor confidence, often leading to falling stock values and generating uncertainty about the strategic objectives of a company. Succession planning can no longer be ignored as an integral part of effective corporate governance.