Corporate Governance is achievement of the highest level of transparency, accountability and equity in all spheres of operations, interactions with the shareholders, employees, government and others. Since the Equity Shares of your Company are not listed on any Stock Exchange(s), the code of Corporate Governance as provided under Clause 49 of the Listing Agreement would not apply to the company. However, your Company reaffirms its commitment to the good corporate governance practices and transparency.
Micro Capitals believes that in order to create sustainable value for our stakeholders, strong Corporate governance has to form an integral part of the way we do business; whether it is with external or internal stakeholder.
We always believe in conducting our business in a manner to inspire trust from prospective investors, lenders and customers for transparency, service, speed, reliability, empathy, commitment and financial integrity. Being into the business of money, the Company is committed to maintain 100% transparency to enjoy investor's respect and customer's trust, which are the pillars of the success in a long run.
Governance in spirit
At Micro Capitals, we believe that governance-driven conduct applies as much to an individual as to a corporate. Corporate Governance entails a framework of ethical conduct that protects the interests of all stakeholders. The Company will further invest in a governance commitment that extends beyond the letter of the law. The result is that even as the Company is unlisted, a number of its actions could be benchmarked with the governance discipline applicable to listed companies.
For customer benefit
Micro Capital's governance has been principally directed towards benefiting customers. We are convinced that if our processes and systems are directed towards the primary interest of the customers, the resulting benefits will generate a virtuous cycle that will make it possible for us to service the diverse and growing needs of our other stakeholders eventually (lenders, employees, community, government and country).
Compliance
At Micro Capitals, we recognize that we are in a sensitive business where we manage large funds inflow from investors and commercial lending institutions on the one hand and outflow to customers on the other. The nature of this operation makes it critical to mobilize and deploy funds responsibly.
Board Composition
Micro Capitals has showcased our governance commitment through our Board composition. Of the three Board members, two are promoter nominee and one is Independent directors. The company will appoint an Investor Nominee Director for each investor with more than 10% stake in the company. The promoter does not have any relatives on the Board or working in the Company. The company is run by the professional CEO, who is competent professionals not related to the promoter in any way, sending out a message to all employees that, in this merit-respecting environment, anyone can rise to the top.
Process-driven
Micro Capitals has invested in processes and systems with the objective to eliminate human error in decision-making. The result is the achievement of consistency across functions and locations. The industry acceptable ERP solution ensures accuracy in the financial operations of the company.
Responsibility
At Micro Capitals, we acknowledge our responsibilities to our stakeholders - the responsibility to enhance corporate value for our shareowners, the responsibility to use loans with prudence and meet repayment obligations on schedule to our lenders and the responsibility to create ethical business opportunities for original equipment manufacturers.