KRBL episode is a milestone in ensuring Board Accountability
Nearly a year after joining KRBL Ltd as an independent director, Anil Chaudhary has stepped down from the board of the renowned India Gate basmati brand owner, alleging corporate governance issues. In his resignation letter, the former Steel Authority of India Ltd (Sail) chairman flagged several governance concerns at the country’s largest exporter of basmati rice, including inconsistencies in recording minutes of the company’s board meetings, instances of information being withheld from the board, undue interference by invitees during board meetings, and concerns over the usage of CSR funds. As per his letter, ‘I have concluded that I am no longer able to meaningfully contribute to the Board's functioning in the manner envisioned under the regulatory framework for independent directors. In such an operating environment where dissent is suppressed or sidelined, remaining on the Board would compromise both my professional ethics and obligations as defined under Indian corporate governance codes.’
Other governance concerns raised by Mr. Chaudhary include a write-off of certain export receivables without adequate deliberation, an arbitrary distribution of variable pay and annual increments to persons holding office or place of profit, and significant changes to the company’s object clause without comprehensive discussion with the board.
