‘startups Should Cultivate A Spirit Of Custodianship’ | Mumbai News – Times of India

by The Technical Blogs

Mumbai: At a time when new-age firms like Byju’s are facing governance issues, the Confederation of Indian Industry has come out with a corporate governance charter for startups.
“Startups, being an important constituent of the Indian business ecosystem, will gain immensely from the charter, which will help them build trust of stakeholders and investors,” said Sanjeev Bajaj, chairman of Corporate Governance National Council and past president of CII.The charter was released by Sebi chief Madhabi Puri Buch at an event here on Tuesday.

The charter requires startups to cultivate a spirit of custodianship and fiduciary responsibility as in a listed company as soon as a non-founder equity infusion occurs. The charter also requires companies to identify and draft the entity’s vision, mission, code of conduct, ethics, values, and culture.
“The perception that good corporate governance involves excessive cost and makes startups less agile may be misplaced. It is important that corporate governance measures are not viewed as a cost centre for business since the cost of non-compliance and misgovernance can be fatal to the business,” the CII charter said.
The event also saw the launch of CII’s report on the Digital Privacy and Data Protection Act. The publication highlights the critical importance of data privacy in today’s digitally driven world, focusing on the Digital Personal Data Protection (DPDP) Act’s impact on enterprises in India.
The DPDP Act calls for identifying the impact of the law on the entity, governance mechanism to ensure compliance, processes for smooth implementation, monitoring mechanism, measures to increase awareness and ingrain it in the entity’s culture, risk mitigation plan, escalation matrix and to build stakeholder trust.

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