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Young Turks: Here’s how startups can tackle corporate governance issues

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Young Turks: Here’s how startups can tackle corporate governance issues

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Earlier this week - when Sequoia Capital India put out a blog titled Corporate Governance: The Cornerstone of an Enduring Company, it seemed to be singing to the choir. The global investing giant's statement has come at a time when four of its portfolio companies - BharatPe, Trell, Zetwerk and Singapore based Zilingo are under investigation for potential fraudulent practices or poor governance. Also reports of related party transactions, mis-selling, tax irregularities and governance lapses have captured the headlines in the startup ecosystem off late! To discuss the kind of guardrails that are required to drive accountability at these young organisations, CNBC-TV18 spoke to Sanjeev Bikhchandani of Info Edge and Rajesh Sawhney of GSF Accelerator.

Earlier this week - when Sequoia Capital India put out a blog titled Corporate Governance: The Cornerstone of an Enduring Company, it seemed to be singing to the choir.
The global investing giant's statement has come at a time when four of its portfolio companies - BharatPe, Trell, Zetwerk and Singapore based Zilingo are under investigation for potential fraudulent practices or poor governance.
The allegations are deeply disturbing, Sequoia said in its statement. Adding that "We have always strongly encouraged founders to play the long game. We focus on the enduring, and discourage focusing on vanity metrics."
Its co-investor in Zilingo- Temasek also put out a strongly-worded statement backing a board led probe into the financials of the fashion retailer. "We expect our portfolio companies to abide by the sound corporate governance and codes of conduct and ethics," it said.
Well exaggerated metrics and inflated valuations aside, reports of related party transactions, mis-selling, tax irregularities and governance lapses have captured the headlines in the startup ecosystem off late!
Over the last few weeks, CNBC-TV18 has been speaking to investors and founders about the kind of guardrails required to drive accountability at these young organisations that are scaling at break-neck speeds. CNBC-TV18 also raised questions on the role of the founder and their relationship with the investors and of course the responsibility of the board and the need to prioritise good governance practices and value systems that can withstand the trials and tribulations of building a successful business.
To discuss this, CNBC-TV18 spoke to, Sanjeev Bikhchandani, Co-Founder of Info Edge and Rajesh Sawhney, Founder & CEO of GSF Accelerator.
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