1.1 INTRODUCTION OF CORPORATE GOVERNANCE:
Corporate governance includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. 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.
* The Manner in which a Corporation is Run
* Achieving its Objectives
* Transparency of its Operations
* Accountability & Reporting
* Good Corporate Citizenship
* The Processes & Operating Relationships that Best Achieve Organisational Goals
1.2 MEANING & DEFINITION:
“Corporate Governance is the system by which companies are directed and controlled…”
Cadbury Report (UK), 1992
“…fundamental objective of corporate governance is the ‘enhancement of the long-term shareholder value while at the same time protecting the interests of other stakeholders.”
SEBI (Kumar Mangalam Birla) Report on Corporate Governance, January, 2000
“Trusteeship obligations inherent in company operations, where assets and resources are pooled and entrusted to the managers for optimal utilisation in the stakeholders’ interests.”
“the way a company is organized and managed to ensure that all financial stakeholders (shareholders and creditors) receive their fair share of a company’s earning and assets”.
Standard & Poor
“Corporate governance is essentially about leadership:
leadership for efficiency; leadership for probity; leadership with responsibility; and leadership which is transparent and which is accountable.”
-PRINCIPLES FOR CORPORATE GOVERNANCE IN THE COMMONWEALTH
“Relationships among various participants in determining the direction and performance of a corporation”.
Monks and Minow
“Corporate Governance is all about... [continues]
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