Indian companies will have to raise their boardroom practices to comply with a new corporate governance code aimed at reforming corporate India after the Satyam scandal last year.
The new code, produced by the Ministry of Corporate Affairs, tells listed companies to separate the role of chairman and CEO, change their external auditor every five years, and conduct an annual review of internal control effectiveness. The code also cuts the number of directorships one person can hold from 15 to 7.
