Hanoz Mistry, Company Secretary, The Tata Power Company Limited, believes continuous changes in legislation has made the business environment very dynamic. However, taking an optimistic view he tells Dipta Joshi, as long as the concerned authorities appreciate that implementation of a new legislation has its own set of challenges and requires time to create structures and processes, CS professionals will soon get on top of the situation
Hanoz Mistry, Company Secretary, The Tata Power Company Limited, has been part of the Secretarial field for the past three decades. Recalling his professional journey, he gives us the insider’s view of how the Indian business environment has evolved over the years.
During the 1990’s, ‘Globalisation’ was the keyword and the government’s open market policies acted as the catalyst for change. Reminiscing those heady years, Hanoz says, “So much was happening back then- the Harshad Mehta stock market scam, the dematerialisation of shares. It was all new, nothing of what we had been taught before. We learnt new things and we learnt them on the job.”
But Hanoz enjoyed the learning curve at that stage of his career. After all, it was a career he had opted for despite his family’s reservations. Being a good student, everyone who knew him expected him to take up Chartered Accountancy (CA). “But I was never comfortable with that option. I chanced upon a write-up on the Company Secretarial (CS) profession in the college library and knew it was a profession I could relate to. There was no looking back after that,” says he.
By 1988, Hanoz had completed his Secretarial course and soon finished his Law studies. He started his CS career as a trainee with Greaves Cotton and Company Limited. After completion of his training, he continued as an Assistant Company Secretary, spending four years in all with Greaves. He joined The Tata Power Company Limited in September 1990 and will complete 25 years this year. “From the lowest position in the department to being the Company Secretary of this esteemed organisation which has just completed 100 years of power generation, it has been a really interesting and fun-filled journey, full of new learnings and challenges with never a dull moment,” says he fondly.
Working in Tata Power has provided Hanoz with plenty of opportunities to deal with various secretarial issues such as rights issues, partly-convertible debentures (PCD issues), sub-division of shares, amalgamations, introduction of the depository system, issue of Depository Receipts, etc.
Hanoz earned another feather in his cap when under the stewardship of Tata Power’s current CEO and MD, Anil Sardana, the company won the 13th ICSI National Award for Excellence in Corporate Governance last year. Hanoz too was honoured as the CS of an award winning company. The Institute of Company Secretaries of India (ICSI) has been bestowing the ICSI National Award for Excellence in Corporate Governance every year on the Best-Governed companies in India since the last 13 years.
Company Secretaries have witnessed a major change in their role after the Companies Act, 2013 was enforced in April 2014. According to Hanoz, “The profession has come a long way since the early days. Today, it has a lot of respectability attached to it on account of the increasing role and responsibilities of a CS in the overall scheme of a corporate’s functioning.”
However, the biggest perceptible impact of the 2013 Act has been on the business environment. In a clear contrast to the new learnings the 90’s era ushered, the general refrain by Company Secretaries today is that the Act requires them to ‘unlearn’ what they have learnt so far. While Hanoz agrees continuous changes in legislation and the regulatory environment has made the current situation very dynamic, he believes it is only a matter of time before CS professionals settle down and get on top of the situation.
Hanoz is also concerned about the 2013 Act trying to plug possibilities of scams by introducing penalties that are too stringent. Making a case for decriminalising offences other than fraud he says, “There is fear of imprisonment for every offence and too much of liability on Independent Directors which is leading to fear of legal action for decisions taken in good faith.” He also feels more clarity is required on matters concerning related party transactions, intercorporate loans, excessive disclosure requirements and conflict with Rules etc.
But taking an optimistic view of the situation, Hanoz adds, “Change always creates some turmoil and hopefully things will even out in due course. But it is also important for the authorities concerned to appreciate that implementing a new legislation has its own set of challenges and requires time to create structures and processes to deal with that.”
A firm believer in team work, Hanoz willingly attributes a big part of his professional success to the people who helped him along the way. Says he, “I have worked with some of the finest human beings and was singularly fortunate to have really good mentors and seniors who one could look up to and learn from. I owe a debt of gratitude to Bomi J Shroff, my predecessor in office, who contributed immensely to my professional and personal growth.”
Going by his personal experience, Hanoz believes today’s youngsters are smart and savvy. His only advice to them is, “Follow the old saying: ‘Slow and steady wins the race’”. It is important to be patient and learn the ropes first and then aspire for the top post.”
