Maruti Suzuki India Limited (the Company) is fully committed to practising sound corporate governance and upholding the highest business standards in conducting business. Being a value-driven organisation, the Company has always worked towards building trust with shareholders, employees, customers, suppliers and other stakeholders based on the principles of good corporate governance, viz., integrity, equity, transparency, fairness, disclosure, accountability and commitment to values.
The Company fosters a culture in which high standards of ethical behaviour, individual accountability and transparent disclosure are ingrained in all its business dealings and shared by its board of directors, management and employees. The Company has established systems and procedures to ensure that its board of directors is well-informed and well-equipped to fulfil its overall responsibilities and to provide the management with the strategic direction needed to create long-term shareholder value.
In India, 'Corporate Governance' standards for listed companies are stipulated by Securities and Exchange Board of India (SEBI) through a special provision- Clause 49 of the Listing Agreement.
As a conscious and vigilant organization, Maruti Suzuki had initiated good 'Corporate Governance' practices even before Clause 49 became applicable and these practices form an integral part of the company’s governance culture.
The Company strives to foster a corporate culture in which high standards of ethical behaviour, individual accountability and transparent disclosure are ingrained in all its business dealings and shared by its Board of Directors, Management and Employees.
The Company has established systems & procedures to ensure that its Board of Directors is well-informed and well-equipped to fulfil its overall responsibilities and to provide the management strategic direction it needs to create long-term shareholder value.
On its Board, the Company has four non-Executive- Independent Directors of high stature from varied backgrounds, who bring with them rich experience and high ethical standards.
In recent years, the Company has evolved a Control Self Assessment mechanism to evaluate the effectiveness of internal controls over financial reporting.
Key internal controls over financial reporting were identified and put to self assessment by control owners in the form of Self Assessment Questionnaires through a web based online tool called "Control Managers”.
With the successful implementation of the online Controls Self Assessment framework, the Company has become one of the few companies in India to have a transparent framework for evaluating the effectiveness of internal controls over financial reporting. The initiative further reinforces the commitment of the Company to adopt best corporate governance practices.
A shareholder or stockholder is an individual or institution (including a corporation) that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself (Fama 1980). Stockholders are granted special privileges depending on the class of stock. These rights may include: The right to sell their shares provided there is a buyer. The right to vote on the directors nominated by the board. The right to nominate directors (although this is very difficult in practice because of minority protections) and propose shareholder resolutions. The right to dividends if they are declared.
The right to purchase new shares issued by the company.
The right to what assets remain after a liquidation.
Stockholders or shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity. For example, labour, suppliers, customers, the community, etc. are typically considered stakeholders because...