Posted on 01 August, 2020
Providing guidance to entrepreneurs
and family run business owners, Mukul Gulati, Managing Partner, Zephyr Peacock,
writes, “While private companies are not required by law to appoint independent
directors, management teams of ambitious young companies should consider
constituting a Board of Directors that include a combination of executive,
non-executive and independent directors.”
Click
here to read the full article on ‘Economic Times’
Below is an excerpt from the post
which first appeared on Economic Times on 1 August 2020:
Good corporate governance can
help improve accountability, business performance, employee retention and
shareholder value. Good governance practices can help both large publicly
listed companies as well as family run businesses.
Governance of an enterprise
encompasses several aspects such as the composition and role of the Board of
directors, decision making process, oversight of management, compliance and
compensation practices.
Good governance practices and
management accountability are easier to establish at professionally run
businesses. Boards of such companies generally have seasoned directors and
management teams are experienced in facilitating constructive engagement with
Board members. Promoter driven or family businesses often struggle in this area
and an experienced, and independent Board of directors can make a meaningful
difference to the long-term trajectory of such businesses.
Independent directors are critical to good governance. While private companies are not required by law to appoint independent directors, management teams of ambitious young companies should consider constituting a Board of Directors that include a combination of executive, non-executive and independent directors.
Click here to read the full article on ‘Economic Times’
Zephyr Management is a global emerging markets investment manager, specializing in the creation and management of highly focused private equity funds
Since its inception in 1994, Zephyr has sponsored and/or managed 26 investment funds in both public and private securities markets representing approximately $1.2 billion in combined commitments and assets under management
Emerging Markets Focus
The firm has initiated several private equity funds investing in several African countries, South Korea, Mexico, India, and Sri Lanka since its founding. Zephyr's funds serve medium size enterprises that are often ignored by larger private equity players. Zephyr funds provide growth capital to established companies with proven business models and sustainable competitive advantages.
Investment activities are currently focused on India, Sri Lanka and Africa.
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Zephyr Peacock India provides equity financing for fast growing, small to medium sized companies led by strong entrepreneurs and management teams.
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Zephyr Acorn provides equity financing and business support to innovative early-stage companies in East Africa.
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The firm's special expertise lies in bringing global best practices to medium-sized growing companies by assisting them in conceptualizing sustainable business strategy, management development, compensation, ESG, expansion outside of their home country, capital structure and positioning for stock exchange listing or trade sale.