The card provides an online self-assessment scorecard that startups can employ to assess their current management status and improve it over time. The tool allows startups to measure management progress, and changes in scores indicate improvements in management practices, assessed from time to time via the scorecard.
The guidance provided to start-ups will be divided into four key stages: creation, development, development and listing on the stock exchange. Each stage emphasizes specific governance principles that may require special attention at this stage of the startup journey.
This comes at a time when startups such as Byju’s, BharatPe, GoMechanic, Groyyo, Mojocare and Zilingo have raised concerns over governance standards over the last 12-18 months. In November last year, ET had reported that corporate governance shortcomings in well-funded startups in India had made investors hesitant to invest enormous sums.
Corporate governance in India is the set of rules, practices and processes by which a company is run and controlled. Ensures that the company is managed fairly to achieve the best interests of all those associated with it.
“While startups thrive on innovation, change and the rapid pursuit of growth opportunities, sound corporate governance improves the quality of their decisions and promotes long-term strategic thinking,” said Kunal Bahl, chairman of the CII National Startup Council.
Bahl, co-founder of Titan Capital and Snapdeal, further said: “It is necessary to embed the principles of good corporate governance from the very first days of a startup so that over time they become part of the DNA of the organization, helping to guide and steer the development of the startup and all its stakeholders at various stages of its growth and development. evolution.” According to Chandrajit Banerjee, CEO, CII, the charter includes key areas of concern for startups regarding governance and inventive concepts aimed at improving the overall governance standards of startups in India.
On March 14, ET reported quoting India’s G20 sherpa Amitabh Kant, who said that for a startup to grow into a successful enormous company, good management practices, which include proper audits and a competent chief financial officer (CFO), are crucial. . Over the past year, several early- and mid-stage startups have started hiring CFOs. Investors are also increasingly demanding that start-ups have adequate financial control over portfolio companies.
