CORPORATE GOVERNANCE

Team: Warren Buffett

Presented by: Rohan Mathew Paul Dhinakaran.M

Corporate governance
• • Corporate Governance is the system by which companies are directed and controlled” ---- Cadbury Committee (U.K). • • Corporate governance is the ‘enhancement of the longterm value while at the same time protecting the interests of other stakeholders.” ---- Kumar Mangalam Birla Committee (India).


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Benefits of Good Corporate Governance
• • • • Having better access to external finance. Lower costs of capital. Improved company performance. Higher firm valuation and share performance. • Reduced risk of corporate crises and scandals

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Four Pillars of Corporate Governance

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Governance Practices at Satyam

• According to Satyam's annual reports, corporate governance was given high importance in the company.

• The corporate governance in Satyam was driven by its core values :
– – – – Associate Delight Investor Delight Customer Delight Pursuit of Excellence

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MAIN ISSUES IN CORPORATE GOVERNANCE
• Role of the Board of Directors and Composition of the Board • • Audit committee • • Shareholder’s Committee • • SARBANES - OXLEY Ask •

Why ?

Governance Lessons from Satyam
• Satyam Receives Golden Peacock Global Award for Excellence in Corporate Governance - LONDON, September 22, 2008

• Board Composition
– Satyam do not have an ‘Audit Committee Financial Expert‘


• Board Independence – Satyam do not have a

• Board Committees

Ask – Satyam do not have a Nominating/Corporate Why ? Governance Committee

Infosys Corporate Governance
• The majority of their Board, 8 out of 15, are independent members.


• Comply with the Euro shareholders Corporate Governance Guidelines, 2000.

• Comply with recommendations of The Conference Board Commission on Public Trusts and Private Enterprises in the U.S
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Infosys Corporate Governance
• Corporate governance ratings • CRISIL - CRISIL GVC Level 1" rating • ICRA - "CGR 1“ rating •
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ENRON VS SATYAM

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Famous Quotes ……
• “Cheshire Puss, asked Alice. Would you tell me, please, which way I ought to go from here? That depends a good deal on where you want to go, said the Cat. I don’t much care where, said Alice. Then it doesn’t matter which way you go, said the Cat”.
*(Charles "Lewis Carroll“, English writer and mathematician, Alice’s Adventures in Wonderland 1865.) •

• “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

*(Warren Buffett.)

“This presentation is totally incomplete with out your valuable contributions .”
Thank you….


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