( Contributor ; hcp )
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Nowadays , there is a lot of talk about " Corporate Governance "
Essentially meaning , how Company Directors should abide by the laws of the land and always act in the interest of the stake-holders
Nothing would illustrate this desirable corporate philosophy better than the following incidence
I believe , it was sometimes in the 80s that Mr Holck Larsen ( HHL ) ceased to be the Executive Chairman of L&T
He was re-designated as " Chairman Emeritus "
About a year after that , one Monday , Mr S R Subramaniam ( SRS ) , walked into my cabin and asked :
" Parekh ,
Is Powai Transport Department ( PTR ) , servicing / repairing HHL's car ? "
I said :
" Yes of course !
On Mondays when all Directors are in Powai for CMC meeting , their drivers take the cars to PTR , for repairs / servicing "
Then knowing SRS's " love for details " , I immediately added ,
" But PTR has Job-Cars for all these cars where cost of materials and labour hours spent , are meticulously recorded and sent to Accounts Department "
Now it was SRS's turn :
" Parekh ,
HHL ceased to be an Executive Director , about a year back
His terms of appointment as Chairman Emeritus , does NOT cover repair / servicing of his car by the Company . He is not entitled for that "
I said ,
" I am sorry but I was not aware of this condition . Now , if you wish , I can just get the Job-Card re-written in the number of one of the Company Cars . Also ensure that this does not happen in future "
SRS agreed re the future course of action but as far as the past one year record was concerned , he said , he will call me back
And after a couple of days , he did :
" Parekh ,
There is no need to reverse those entries on the Job-Card of HHL's car , which amounted to an expenditure of Rs 73,000 / -
Yesterday , HHL has sent to L&T , a cheque for that amount from his personal bank account
He did not want anyone of us to do something that is illegal "
-----------------------------------------------------------------------------------------
Nowadays , there is a lot of talk about " Corporate Governance "
Essentially meaning , how Company Directors should abide by the laws of the land and always act in the interest of the stake-holders
Nothing would illustrate this desirable corporate philosophy better than the following incidence
I believe , it was sometimes in the 80s that Mr Holck Larsen ( HHL ) ceased to be the Executive Chairman of L&T
He was re-designated as " Chairman Emeritus "
About a year after that , one Monday , Mr S R Subramaniam ( SRS ) , walked into my cabin and asked :
" Parekh ,
Is Powai Transport Department ( PTR ) , servicing / repairing HHL's car ? "
I said :
" Yes of course !
On Mondays when all Directors are in Powai for CMC meeting , their drivers take the cars to PTR , for repairs / servicing "
Then knowing SRS's " love for details " , I immediately added ,
" But PTR has Job-Cars for all these cars where cost of materials and labour hours spent , are meticulously recorded and sent to Accounts Department "
Now it was SRS's turn :
" Parekh ,
HHL ceased to be an Executive Director , about a year back
His terms of appointment as Chairman Emeritus , does NOT cover repair / servicing of his car by the Company . He is not entitled for that "
I said ,
" I am sorry but I was not aware of this condition . Now , if you wish , I can just get the Job-Card re-written in the number of one of the Company Cars . Also ensure that this does not happen in future "
SRS agreed re the future course of action but as far as the past one year record was concerned , he said , he will call me back
And after a couple of days , he did :
" Parekh ,
There is no need to reverse those entries on the Job-Card of HHL's car , which amounted to an expenditure of Rs 73,000 / -
Yesterday , HHL has sent to L&T , a cheque for that amount from his personal bank account
He did not want anyone of us to do something that is illegal "
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