CORPORATE GOVERNANCE

Introduction
Meaning
Historical Evolution
Objectives
Fundamental Principles
Conclusion
 CORPORATE GOVERNANCE

Meaning

Corporate Governance is about promoting

corporate fairness, transparency and
accountability

-James D. Wolfensohn
CORPORATE GOVERNANCE

Corporate Governance is a system by which

business corporations are directed and
controlled

-OECD
CORPORATE GOVERNANCE

Corporate Governance is the process by

which corporation is made responsive to
the rights and wishes of stakeholders.

-Ada Demb & Fredrich Neubauer

CORPORATE GOVERNANCE

Corporate Governance refers to the

structure, systems, and processes in a
corporation, that are considered most
appropriate to enhance its wealth
generating capacity

- Y.C. Deveshwar
CORPORATE GOVERNANCE

Corporate Governance is also concerned

with the ethics, values and morals of a
company and its directors

- Salim Sheikh and William Ress

 HISTORICAL EVOLUTION OF
CORPORATE GOVERNANCE
U.K

Cadbury Committee
Sir Ronald Hampel
Greenbury
Turnbull
 HISTORICAL EVOLUTION OF
CORPORATE GOVERNANCE
INDIA

Rahul Bajaj Committee

Kumar Mangalam Birla Committee
Ganguly Committee
Naresh Chandra Committee
Narayan Murthy Committee
 OBJECTIVES OF CORPORATE
GOVERNANCE
To promote a healthy environment for long term
investment.
To create a trust in the corporate and in its
abilities.
To promote business development.
To improve the efficiency of the capital markets.
To enhance the effectiveness in the service of
the real economy.
To exercise effective control on corporate affairs
by the board at all times.
 FUNDAMENTAL PRINCIPLES OF
CORPORATE GOVERNANCE
a) Ethics
b) Transparency
c) Accountability
d) Trusteeship
e) Empowerment
f) Fairness to all stakeholders
g) Oversight
h) External Audit
i) Regulatory regime
j) Whistle blower policy
 CONCLUSIONS

1. Practice prevalent in different modes.

2. No single definition.
3. Mere law is not sufficient.
4. Accounting standards.
5. Professional and competent directors.
6. Evaluation.
 FINAL WORD

Minimal Corporate Governance Law

Better Corporate Governance Professional

Management

Best Corporate Governance Ethical Practices

Harvard was dedicated to The authority of
ideas instead of the idea of authority

- Lawrance Summers
(President of Harvard University)
On March 5, 2003