Anand Mahindra on Friday addressed the shareholders of Mahindra and Mahindra Group at its annual general meeting (AGM) for the last time as the firm's executive chairman. Mahindra would be stepping down from the executive role in November and would become the non-executive chairman of the Mahindra and Mahindra group.
Addressing the shareholders, Mahindra said, "As the head of your company's board, I along with our board colleagues, will continue to provide strong oversight of the financial performance of the company."
"Governance will be major areas of focus, I will be deeply engaged in monitoring the routine governance functions that ensure transparency and the appropriate flow of information," he added.
Mahindra explained to the shareholders that the internal audit, which is an "important tool for good governance", will report directly to him and this is the one operational function that will continue to be his responsibility when he becomes the non-executive chairman.
"The lightning of the load on other operational matters will give me the opportunity to concentrate on what I consider to be the most important function of any board chairman, and that is to be the custodian of the brand and to ensure that the vision and the values of our founders continue to guide us and to light our path," said Mahindra.
In February, the firm had stated in a regulatory filing that Anand Mahindra will continue to serve as the firm's executive chairman till November 11, 2021. This announcement had come after markets regulator Sebi deferred by two years, till April 2022, its directive for companies to split posts of chairman and managing director. Sebi had done so in wake of demand from the corporates and to keep compliance costs lower amid a slowing economy.
As per the Sebi norms, the top 500 listed entities are mandated to comply with the requirement of separation of the roles of chairperson and managing director (MD) or chief executive officer (CEO) by April 1, 2022.
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