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B.Ravikiran
Balakrishna
Rubina
1
Corporate Governance
 Definition
 Objectives
 Key constituents
 Other Main Constituents
 Organizational Frame Work
 Committees
 Benefits
 Limitations
 Suggestions and Opinions
2
Definition
 A set of systems, processes, principles which ensure that a
company is governed in the best interest of all stakeholders
 Good corporate governance=good business
3
Objectives
 Adequate disclosures
 Effective decision making
 Transparency
 Statutory and legal compliances
 Protection of shareholder Interests
 Commitment
 Accountability and responsibility
4
Key constituents
 Board of directors
 Shareholders
 Management
5
Other main constituents
 Role And Powers Of Board
 Legislation
 Code Of Conduct
 Board Independence
 Board Skills
 Management Environment
 Board Appointments
 Board Inductions And Training
 Board Meetings
6
Contd….
 Financial And Objectives Reporting
 Monitoring Board Performances
 Audit Committee
 Business And Community Obligations
 Risk Management
7
Governing Authority
 Ministry of Corporate Affairs (MCA)
Naresh chandra committee (2002)
 Securities Exchange Board of India (SEBI)
 Kumaramangalam Birla committee report- clause 49 of the listing
agreement
 N.R.Narayana murthy and committee- to review clause 49
 Financial and non-financial disclosures
 Independent auditing board
8
Benefits
 Industrial Economy Country’s Economy
 Confidence Of Investors-foreign And Domestic
 Retainment Of Best Human Capital
 Stable Sources Of Financing
 Stability And Growth To The Enterprise
 Fairness With Stakeholders
 Increases Operational Performance Of A Company
 Strategic Thinking
 Monitoring Of Risk Factors
 Limiting Liabilities
 Integrity Of Financial Reports
9
Limitations
 Beyond the realm of law
 Need for evolution of new systems of corporate governance
10
Suggestions and Opinions
 Quality Audit
 Accountability Of CEOs And CFOs
 Quality And Effective Legal, Administrative And Regulatory
Frame Work
 Compliance With Code, Principles And Requirements
 Financial And Non-financial Disclosures
 Transparency In Administration
11
Thank You
12

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Corporarate governance

  • 2. Corporate Governance  Definition  Objectives  Key constituents  Other Main Constituents  Organizational Frame Work  Committees  Benefits  Limitations  Suggestions and Opinions 2
  • 3. Definition  A set of systems, processes, principles which ensure that a company is governed in the best interest of all stakeholders  Good corporate governance=good business 3
  • 4. Objectives  Adequate disclosures  Effective decision making  Transparency  Statutory and legal compliances  Protection of shareholder Interests  Commitment  Accountability and responsibility 4
  • 5. Key constituents  Board of directors  Shareholders  Management 5
  • 6. Other main constituents  Role And Powers Of Board  Legislation  Code Of Conduct  Board Independence  Board Skills  Management Environment  Board Appointments  Board Inductions And Training  Board Meetings 6
  • 7. Contd….  Financial And Objectives Reporting  Monitoring Board Performances  Audit Committee  Business And Community Obligations  Risk Management 7
  • 8. Governing Authority  Ministry of Corporate Affairs (MCA) Naresh chandra committee (2002)  Securities Exchange Board of India (SEBI)  Kumaramangalam Birla committee report- clause 49 of the listing agreement  N.R.Narayana murthy and committee- to review clause 49  Financial and non-financial disclosures  Independent auditing board 8
  • 9. Benefits  Industrial Economy Country’s Economy  Confidence Of Investors-foreign And Domestic  Retainment Of Best Human Capital  Stable Sources Of Financing  Stability And Growth To The Enterprise  Fairness With Stakeholders  Increases Operational Performance Of A Company  Strategic Thinking  Monitoring Of Risk Factors  Limiting Liabilities  Integrity Of Financial Reports 9
  • 10. Limitations  Beyond the realm of law  Need for evolution of new systems of corporate governance 10
  • 11. Suggestions and Opinions  Quality Audit  Accountability Of CEOs And CFOs  Quality And Effective Legal, Administrative And Regulatory Frame Work  Compliance With Code, Principles And Requirements  Financial And Non-financial Disclosures  Transparency In Administration 11