corporte governance

8/12/2019 Corporte Governance

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INTRODUCTION

The term corporate governance

has got much currency after

successive corporate failures. Theprocess of LPG in 1991 triggered the

need for much stronger governance

and more protection towards theinterest of investors . Hence the term

corporate governance came in to

lame light.


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DEFINITIONS

corporate governance is the relationship

of a company with its stake holders, more

broadly its relationship to the society

-financial times 1997

corporate governance is all about

promoting corporate fairness, transparency

accountability


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MEANING

Corporate governance refers to an

economic legal and institutional environment

that allows companies to diversify, grow,

restructure and exit and do everythingnecessary to maximize its long term value


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HISTORY

Emerged at various stages in various

countries

In India it was penned in 3rdcentury BC by

KAUTILYA.

He quoted prajasukhe, sukha margam,

prajanaka hitam, ye hitam natman priyam

hitam ragyan, prjanan tu priyam hitam

means well being of a constructed

organization depends up on well being of its

people.


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HE QUOTED FOUR FOLD DUTIES OF A KING:RAKSHA-PROTECTION-PROTECTION OF

SHARE HOLDERS WEALTH

VRIDHI-ENHANCEMENT-ENHANCEMENT OF

WEALTH BY PROPER UTILISATION OF ASSETS

PALANA-MAINTENANCE-MAINTENANCE OF

SHARE HOLDERS WEALTH

YOGAKSHEMA-SAFEGUARD-SAFE GUARDINGTHE INTEREST OF STAKE HOLDERS.


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HISTORY POST INDEPENDENCE:

From 1947 indian economy was controlled

by norms and restrictions

During 1980 economy was not in a good

shape

1991 reforms stimulated economy corporate

governance emerged.

Committees formed


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OBJECTIVES:

1. Fairness2. Transparency

3. Accontability

4. Responsibility

need for corporate governance:1. Reduces risk

2. Stimulates performance

3. Improves access to capital markets

4. Enhances the marketability5. Improves leadership

6. Demonstrates tranparency and social responsibility


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COMMITIES FORMED TO REGULATE

CORPORATE GOVERNANCE IN INDIA

Cadbury committee on corporate governance,1992

Paul ruthman committee

Green bury committee(jan 1995)

Hampel committee (nov 1995)

The combined code

The jumbull committee

World bank on corporate governance

Organisation for economic co-operation and

development

Sarbanes Oxley Act-2002


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CHALLENGES FACING CORPORATE

GOVERNANCE IN INDIA

INSIDE TRADING

GLOBALISATION

LIBERALISATIONFOREIGN DIRECT INVESTMENT

CORPORATE SCANDALS


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REGULATORY FRAME WORK OF CORPORATE

GOVERNANCE

MCA(corporates)

Capital market and Stock exchanges(SEBI)

Money market and banking.

Insurance life and non-life(IRDA)

Telecom Regulatory Authority of India

Foreign businesses(fipb)

Imports and Exports(FEMA, OGFT)

Professions such as ICAI, ICSI, ICWAI etc


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RECENT TRENDS IN CORPORATE GOVERNANCE

Social corporate responsibilities

Value rating for governance

Concepts such as economic

value added, market value added

and human resources.


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CONCLUSION

Corporate governance is a necessary tool

for management performance, it also leads

to growth and excellence.

Corporate governance is a path on which

success can be experienced and excellence

is achieved

corporte governance

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