Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 13 December 2015

Corporate Governance

(  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 "






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