The world is now ablaze with the cries of corporate governace. The media report on the abuses of company managements that used to fill up the pages a few years back continue to abound. These abuses vary in nature from the misuse of privileged information for peersonal gains to the abuse of corporate trust to the siphoning of money to non-company funds. A complte denial sush as disregarding the AGM is a very local phenomenon. The major objective of corporate governance is the protection of minority shareholders against these management abuses. At times, regulatory processes are changed to contain the detected weakness. But the inflictions continue and the wounds get deeper.
Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. It also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include employees, customers, creditors, suppliers, regulators, and the community at large.
Corporate governance is a multi-faceted subject. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. Corporate Governance involves a set of relationships and the networks between a company’s management, its board of directors, its shareholders and stakeholders.
← The effective corporate governance practice is often associated with a sound legal and regulatory framework and rules of law in addition to incentive structures.
← Corporate governance seeks the ethical and transparent operations of enterprises and their management.
1.2 Corporate Governance Practices in Bangladesh:
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(2010, 10). Corporate Goverance & Its Impact on Capital Market: a Case Study on Cse (Chapter-01). StudyMode.com. Retrieved 10, 2010, from http://www.studymode.com/essays/Corporate-Goverance-Its-Impact-On-453269.html
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