FEDERAL-MOGUL GOETZE INDIA LIMITED CODE OF CONDUCT FOR DIRECTORS
AND SENIOR MANAGEMENT
This Code of Conduct ("Code") is applicable to the Board of Directors of Federal-Mogul Goetze India Limited ("Company") and all the Senior Management
Personnel that is all members of the management one level below the executive
director and all functional heads, hereinafter referred to as "specified
The specified employees of the Company acknowledge and accept the scope and extent of our duties. We are entrusted with the responsibility for the
oversight of the assets and business affairs of the Company in an honest, fair,
diligent and ethical manner. We must act within the bounds of the authority
conferred upon us and with the duty to make and enact informed decisions and
policies in the best interests of the Company and its shareholders. The Board of
Directors has adopted the following Code of Conduct and all the specified
employees are expected to adhere to the standards of loyalty, good faith, and
the avoidance of conflict of interest that follows:
II. Code of Conduct:
(1). A specified employee must act honestly, in good faith and
in the best interests of the Company as a whole.
(2). A specified employee has a duty to perform the functions
of office and exercise the powers attached to that office with a degree of care
and diligence that a reasonable person would exercise if they were in the same
(3). A specified employee should consider matters having
a) Any possible material personal interest he or she may have in the subjectmatter;
b) The amount of information appropriate to properly consider the subject matter; and
c) What is in the best interests of the Company.
(4). A specified employee must recognize that his or her dominant purpose or object
must be to serve the interests of the members of the Company as a whole, not the
interests of any particular group of Directors, employees or stakeholders or the
specified employee's personal or commercial interests. In circumstances of
insolvency or near insolvency, the duty to act in the best interests of members
is overridden by a duty to act in the best interests of creditors.
(5). A specified employee must not make improper use of
information acquired by him to gain a personal advantage or to cause detriment
to the Company.
(6). A specified employee must not take improper advantage of his position to gain a personal advantage or to cause detriment to the
(7). A specified employee must not place himself or herself in a position where there is a reasonable possibility of conflict between
his or her personal or business interests, the interests of any associated
person, or his or her duties to any other company, on the one hand, and the
interests of the Company or his or her duties to the Company, on the other hand.
The action which a specified employee will be required to take if he or she is
faced with an actual or potential conflict of interest or duties in relation to
a particular matter being considered by the Company will depend on the nature
and circumstances of the conflict and may include any of the following:
a). Fully and frankly informing about the circumstances giving rise to the conflict;
b). In case of Directors abstaining from voting on any motion relating to the matter and absenting himself or
herself from all board deliberations relating to the matter; or
c). Resigning from his position.
If a specified employee believes that he may have a conflict of interest or duty in relation to a particular
matter, the specified employee should consult with the Board of Directors.
(8). A Director must bring an enquiring, open and independent
mind to Board meetings, listen to the debate on each issue raised, consider the
arguments for and against each motion and reach a decision that he or she
believes, to be in the best interests of the Company as a whole. (9). An
opportunity must be provided for a specified employee to put his or her views on
issues before the Management, Board or a Committee, as the case may be. While
specified employees must treat each other with courtesy and observe the other
rules in this Code, specified employees should be able to engage in vigorous
debate on matters of principle.
(10). The specified employees must not disclose the content of discussion at Senior Management meetings, Board meetings or Committee
meetings outside appropriate and reasonable circles within the Company with a
legitimate interest in the subject of the disclosures, unless that disclosure
has been authorized by the Company, or is required by law.
(11). A specified employee generally must not engage in conduct, or make any public statement likely to prejudice the Company's
business or likely to harm, defame or otherwise bring discredit upon or
disintegrate the Company, fellow employees or staff. A specified employee may
make such a statement only if the specified employee believes in good faith that
it is in the best interests of the Company as a whole to make such a statement.
(12). A specified employee shall not disclose or allow disclosure to other of any confidential information that are either provided or
made available to the specified employees by the Company nor shall use such
confidential information for any purpose detrimental to the Company.
(13). A specified employee has an obligation, at all times, to comply with the spirit, as well as the letter, of the law and of the
principles of this Code of Conduct and the Code of Conduct and Integrity
policies framed by the Company from time to time.
(14). A specified employee has to comply with the Company's Insider Trading Code while trading in the Company's securities at any time.