The PHD Chambers of Commerce and Industry has welcomed the Union Government’s initiative to separate the role of Chairman and Managing Director of companies, thereby making it voluntary and not mandatory.
PHDCCI believes that this is a great step towards “Ease of Doing Business in the country”, said its President Pradeep Multani in a release here.
The voluntary provision will be significantly helpful in bringing new investments, ideas and expansion of existing capacities, mitigating risk-taking capacity and entrepreneurial spirit which are pre-requisites for industrialisation, said Multani.
The mandatory requirement of splitting of the office of Chairman & Managing Director/CEO was uncalled for as there are already checks and balances in the listing regulations with respect to broad basing and diversity of the composition of Board of Directors, he said.
“We are once again thankful to the government for accepting our suggestions and we look forward to enhancing Ease of Doing Business in the country, Multani added.
