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    Corprate Governencesumith, 241

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    Sudhir Shetty
    The document discusses corporate governance, which involves the relationships between management, shareholders, and stakeholders of a company. It covers principles of corporate governance like rights of shareholders, interests of stakeholders, integrity and ethics, disclosure and transparency, and roles of the board. It also discusses corporate governance in India and renewed interest due to accounting scandals.

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    Corprate Governencesumith, 241

    Uploaded by

    Sudhir Shetty
    41 views11 pages
    The document discusses corporate governance, which involves the relationships between management, shareholders, and stakeholders of a company. It covers principles of corporate governance like rights of shareholders, interests of stakeholders, integrity and ethics, disclosure and transparency, and roles of the board. It also discusses corporate governance in India and renewed interest due to accounting scandals.

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    corprate governencesumith ,241

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    The document discusses corporate governance, which involves the relationships between management, shareholders, and stakeholders of a company. It covers principles of corporate governance like rights of shareholders, interests of stakeholders, integrity and ethics, disclosure and transparency, and roles of the board. It also discusses corporate governance in India and renewed interest due to accounting scandals.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    41 views11 pages

    Corprate Governencesumith, 241

    Uploaded by

    Sudhir Shetty
    The document discusses corporate governance, which involves the relationships between management, shareholders, and stakeholders of a company. It covers principles of corporate governance like rights of shareholders, interests of stakeholders, integrity and ethics, disclosure and transparency, and roles of the board. It also discusses corporate governance in India and renewed interest due to accounting scandals.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    introduction

    Corporate governance is "the system by which companies are directed and controlled" (Cadbury Committee, 1992).

    It involves a set of relationships between a companys management, its board, its

    shareholders and other stakeholders; it deals with prevention or mitigation of the conflict of interests of stakeholders.

    Ways of mitigating or preventing these conflicts

    of interests include the processes, customs, policies, laws, and institutions which have impact on the way a company is controlled.
    Corporate governance also includes the

    relationships among the many stakeholders (external & internal) involved and the goals for which the corporation is governed.

    External & Internal Stake holders


    External stakeholder groups are shareholders, debt

    holders, trade creditors, suppliers, customers and communities affected by the corporation's activities.
    Internal stakeholders are the board of

    directors, executives, and other employees. It guarantees that an enterprise is directed and controlled in a responsible, professional, and transparent manner with the purpose of safeguarding its long-term success. It is intended to increase the confidence of shareholders and capital-market investors

    There has been renewed interest in the corporate

    governance practices of modern corporations since 2001, particularly due to the high-profile collapses of a number of large corporations, most of which involved accounting fraud.

    Corporate scandals of various forms have maintained

    public and political interest in the regulation of corporate governance.

    Principles of corporate governance


    Rights and equitable treatment of

    shareholders: Organizations should respect the rights of shareholders and help shareholders to exercise those rights. They can help shareholders exercise their rights by openly and effectively communicating information and by encouraging shareholders to participate in general meetings.
    Interests of other stake holders: Organizations

    should recognize that they have legal, contractual, social, and market driven obligations to nonshareholder stakeholders, including employees, investors, creditors, suppliers, local communities, customers, and policy makers.

    Integrity and ethical behavior:


    Integrity should be a fundamental requirement in choosing

    corporate officers and board members. Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making.

    Disclosure and transparency:


    Organizations should clarify and make publicly known the

    roles and responsibilities of board and management to provide stakeholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.

    Role and responsibilities of the board: The board

    needs sufficient relevant skills and understanding to review and challenge management performance. It also needs adequate size and appropriate levels of independence and commitment

    Corporate Governance In India


    India's SEBI Committee on Corporate Governance

    defines corporate governance as the "acceptance by management of the rights of shareholders as the true owners of the corporation and of their own role as trustees on behalf of the shareholders. It is about commitment to values, about ethical business conduct and about making a distinction between personal & corporate funds in the management of a company."

    Cont
    It has been suggested that the Indian approach is

    drawn from the Gandhian principle of trusteeship and the Directive Principles of the Indian Constitution, but this conceptualization of corporate objectives is also prevalent in Anglo-American and most other jurisdictions.

    By- Sumeet Tamrakar Sec-B

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