Corporate Governance

1. Group Members
Tejas Soman
Anand Singh
Mukul Saigal
Vijay Rana
Peeyush Sahu
Ravi Ranjan1

2. Objective of OECD: –
• to achieve the highest sustainable economic growth and employment and
a rising standard of living in member countries, while maintaining financial
stability, and thus to contribute to the development of the world economy;
• to contribute to sound economic expansion in member as well as non-
member countries in the process of economic development; and
• to contribute to the expansion of world trade on a multilateral, non-
discriminatory basis in accordance with international obligations. Policies
that will improve the economic and social well-being of people around the
world.
• Provide a forum in which governments can compare and exchange policy
experiences, identify good practices and promote decisions and
recommendations to produce better policies for better lives.
• The common thread of our work is a shared commitment to market
economies backed by democratic institutions and focused on the well-
being of all citizens.
• Along the way, we also set out to make life harder for the terrorists, tax
dodgers, crooked businessmen and others whose actions undermine a fair
and open society.
What’s OECD
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3. The OECD Principles of Corporate Governance and its
Annotations
• Ensuring the Basis for an Effective Corporate
Governance Framework
• The Rights of Shareholders and Key Ownership Functions
• The Equitable Treatment of Shareholders
• The Role of Stakeholders in Corporate Governance
• Disclosure and Transparency
• The Responsibilities of the Board
The Report
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4. • The corporate governance framework should promote
transparent and efficient markets, be consistent with the
rule of law and clearly articulate the division of
responsibilities among different supervisory, regulatory
and enforcement authorities.
Ensuring the Basis for an Effective Corporate Governance
Framework
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5. The corporate governance framework should protect
and facilitate the exercise of shareholders’ rights.
The Rights of Shareholders and Key Ownership Functions
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6. The corporate governance framework should ensure
the equitable treatment of all shareholders, including
minority and foreign shareholders. All shareholders
should have the opportunity to obtain effective
redress for violation of their rights.
The Equitable Treatment of Shareholders
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7. The corporate governance framework should
recognize the rights of stakeholders established by
law or through mutual agreements and encourage
active co-operation between corporations and
stakeholders in creating wealth, jobs, and the
sustainability of financially sound enterprises.
The Role of Stakeholders in Corporate Governance
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8. The corporate governance framework should ensure
that timely and accurate disclosure is made on all
material matters regarding the corporation, including
the financial situation, performance, ownership, and
governance of the company.
Disclosure and Transparency
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9. The corporate governance framework should ensure
the strategic guidance of the company, the effective
monitoring of management by the board, and the
board’s accountability to the company and the
shareholders.
The Responsibilities of the Board
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