ESSAY: “Corporate Governance in INDIA: Past, Present and Future”
The term Corporate Governance refers to the relationship among the three groups (Top Managers, Board of Directors (BOD) and Shareholders) in determining the direction and performance of the corporation. Corporate Governance is the system by which companies are directed and controlled by the management in the best interest of shareholders and others ensuring greater transparency and timely financial reporting. The BOD is responsible for governance of their companies. “Corporate Governance” is needed to create a corporate culture of conscientious, transparency and openness not only for the healthy and vibrant corporate sector but also for the inclusive growth of the economy. It refers to the combination of laws, rules, regulations, procedures and voluntary practices to enable the companies to maximize the shareholders’ long term value.
Good Corporate Governance is essential for the integrity of corporations, financial institutions and markets. It ensures the health of our economy and its stability, as effective corporate governance and economic development are intrinsically linked. India’s corporate sector is diverse in nature. On the one hand, it consists of Multinational Corporations, whereas on the other hand a large number of small and medium enterprises drive its growth and provide dynamism to the sector. A brief overview of the history of the development of corporate laws in INDIA is marked as:
Pre independence, India did not comprised of well organized market; as a result, there were no corporate laws and governance in India. After independence (1947-1991),India inherited one of the world’s poorest economies but had a factory sector accounting for a 10th of the national product, four functioning stock markets with clearly defined rules governing listing, trading and settlements; a well-developed equity culture. The 1956 Companies Act as well as other laws functioning the governing of other... [continues]
The term Corporate Governance refers to the relationship among the three groups (Top Managers, Board of Directors (BOD) and Shareholders) in determining the direction and performance of the corporation. Corporate Governance is the system by which companies are directed and controlled by the management in the best interest of shareholders and others ensuring greater transparency and timely financial reporting. The BOD is responsible for governance of their companies. “Corporate Governance” is needed to create a corporate culture of conscientious, transparency and openness not only for the healthy and vibrant corporate sector but also for the inclusive growth of the economy. It refers to the combination of laws, rules, regulations, procedures and voluntary practices to enable the companies to maximize the shareholders’ long term value.
Good Corporate Governance is essential for the integrity of corporations, financial institutions and markets. It ensures the health of our economy and its stability, as effective corporate governance and economic development are intrinsically linked. India’s corporate sector is diverse in nature. On the one hand, it consists of Multinational Corporations, whereas on the other hand a large number of small and medium enterprises drive its growth and provide dynamism to the sector. A brief overview of the history of the development of corporate laws in INDIA is marked as:
Pre independence, India did not comprised of well organized market; as a result, there were no corporate laws and governance in India. After independence (1947-1991),India inherited one of the world’s poorest economies but had a factory sector accounting for a 10th of the national product, four functioning stock markets with clearly defined rules governing listing, trading and settlements; a well-developed equity culture. The 1956 Companies Act as well as other laws functioning the governing of other... [continues]
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