“The institutional investors should use their powers and influence to ensure the implementation of the best practices set out in the Combined Code (2008)”. In the light of this statement state the observations of Kumar M

Institutional shareholders acquire a large stake in equity share capital of the listed companies. In some of the listed companies they are the major shareholders and own shares largely on behalf of the retails shareholders. They have special responsibility given the weightage of their votes and have a bigger role to play in corporate governance. They can effectively use their powers to influence the standard of corporate governance. The recommendations of Kumar Mangalam Birla Committee for the institutional shareholders are: Take active interest in the composition of the Board of Directors. Be vigilant. Maintain regular and systematic contact at senior level for exchange of views on management, strategy, performance and the quality of management. Ensure that voting intentions are translated into practice. Evaluate the corporate governance performance of the company.