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MAJOR THRUST AREAS OF CORPORATE GOVERNANCE AND GOOD CORPORATE GOVERNANCE .
CORPORATE GOVERNANCE Background Corporate governance is "the system by which companies are directed and controlled". Corporate Governance may be defined as holding a balance between economic & social goals & between individual & commercial goals .
. lenders. suppliers. stock exchanges.PARTIES INVOLVED Three key constituents: oBoard Of Directors oShareholders oManagement Government agencies. customers etc.
BENEFITS Major benefits of corporate governance to: Companies Shareholders Economy .
Disclosure & Transparency. .Principles of Corporate Governance Rights & equitable treatment of shareholders. Roles & responsibilities of the board. Interests of other shareholders. Integrity & ethical behavior.
Four Pillars of Corporate Governance Accountability Fairness Transparency Independence .
ETHICAL CONDUCTS OF COMPANIES Codes of most companies are approved by their boards. and should be clearly reflective of the "tone at the top". General Electrics TATA Infosys .
. accurate and transparent disclosure Mechanism. Importance of the role of stakeholders Importance of timely.MAJOR THRUST AREAS Effective institutional and legal framework Protects and facilitates the exercise of shareholders rights Equitable treatment of all shareholders. Deal with the board structures & responsibilities.
Ramalinga Raju. The founder of such organization was mr. .INTRODUCTION TO SATYAM COMPUTER CONSULTANCY LIMITED SATYAM COMPUTER CONSULTANCY LIMITED was established on June 24 1987.
Satyam announced acquisition of two companies . The case examines the corporate governance issues at the India based I services company.DETAILS ABOUT THE CASESATYAM SCAM In mid-December2008. . It planned to acquire 100% and 50% stakes in Maytas property Questions were raised on the corporate governance practices of Satyam with analysts and investors questioning the company's board on the reasons for giving consent for the acquisition as it was a related party transaction.Maytas Properties andMaytas Infrastructure owned by the family members of Satyam's founder andChairman Ramalinga Raju (Raju). Satyam Computer Services Limited (Satyam).
Spice group and tech mahindra.AFTER EFFECTS OF THE SCAM After the scam of rs. named KPMG was penalized.14000 crore came into light. . the board of members were Replaced temporarily by experts Even the auditing company. The final three bidders for satyam were L&T.
Shareholders expect transparent dealing in an organization. . It is well known that a shareholder has a right to get information from the organization. It proved a poor relationship with all the stakeholders. such information could be with respect to the merger and acquisition.GOVERNANCE ISSUE Governance issue at Satyam arose because of non fulfillment of obligation of the company towards the various stakeholders.
. To increase the Cash & bank balance correspondingly.ACTUAL SCENARIO Simple manipulation of revenues and earnings To show superior performance Raising fictitious bills for services that were never rendered.
there is a greater need of adopting and sustaining good corporate governance practices for value creation and building corporations of the future. Industrialists and corporates in the country are being increasingly asked to adopt better and transparent corporate practices.FUTURE PROSPECTS The global environment changing continuously. The application of corporate governance requirements can adversely affect the relationship amongst participants of the governance system. .
SUGGESTIONS There is a greater need to increase awareness among entrepreneurs about the various aspects of corporate governance. namely:- Quality of audit. administrative and regulatory framework. There are some of the areas that need special attention. which is at the root of effective corporate governance Role of Board of Directors as well as accountability of the CEOs and CFOs Quality and effectiveness of the legal. etc. .
THANK YOU!!! PRESENTED BY: SHIVANGI BARANWAL(10) DRASHTI BHATT(14) DRASTI DOSHI(23) SHRUTI KURUP(52) .