Corporate Governance- An Introduction

Corporate Governance Defined

According to Cadbury committee (U.K):Corporate Governance is defined as the system by which companies are directed and controlled

Corporate governance is the relationship among

corporate managers, directors and providers of equity, people, and institutions who save and invest their capital to earn a return.

It ensures that the company is managed to the best

interests of all the stakeholders.

Framework of Corporate Governance

Principles Of Corporate Governance

Transparency Accountability

Fairness

Responsibility

Principles

Features Of Corporate Governance

Delineates Framework for business

Assurance to well functioning market

Underpins Economic Growth in Market Commitment to organization.

Importance of Corporate Governance

Corporate Governance Rating System

Standard & Poors : It has rated corporates on the
scale of 1 to 10 on following four basic criteria :* Ownership Structure & influence. * Financial stakeholders relation. * Transparency & information disclosure * Board management Structure & process.

Closure Note
If a country does not have a reputation for strong corporate governance practices, capital will flow elsewhere. If investors are not confident with the level of disclosure, capital will flow elsewhere. If a country opts for lax accounting and reporting standards, capital will flow elsewhere. All enterprises in that country regardless of how steadfast a particular companys practices may be suffer the consequences. -Arthur

Levit ( Federal Bank Of New York)

Amit Roy Shivam Ghai Nitin Verma Nupur Shrma Sonu mishra Sunaina verma