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2. 36 Theory and Practice of Corporate Governance

2. 36 Theory and Practice of Corporate Governance

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Published by m_dattaias

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Published by: m_dattaias on Jan 24, 2010
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05/12/2013

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Theory and Practice of Corporate Governance
 
 
The concept: CorporateGovernance
The joint stock company known as thecorporation is the nucleus of all businessactivities in modern economies. Allcorporations do not however enjoy equalshare of power; they also do not have thesame size and degree of operations. InIndia as well as countries like US, UK themajor share of the capital is in the handsof few giant corporations that control theproduction and the market for goods.
 
 
Definition
“The business corporation is an instrumentthrough which capital is assembled for activitiesof producing and distributing goods and servicesand making investments. Accordingly, a basicpremise of corporation law is that a businesscorporation should have as its objective theconduct of such activities with a view toenhancing the corporation’s profit and gains of the corporation’s owners, that is the shareholders.”

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