Corporate governance involves maintaining accountability between a company's owners, directors, and managers. It is about commitment to values and ethical business conduct, and how a company is structured and managed. Effective corporate governance requires timely disclosure of financial and other information to improve transparency and build trust with stakeholders. In India, the Confederation of Indian Industry and Securities and Exchange Board of India have established corporate governance codes and guidelines. Principles of good corporate governance include protecting shareholder rights, recognizing stakeholder interests, board roles and responsibilities, integrity, transparency, and disclosure.
The KING IV CODE on Corporate Governance In South Africa Part I Introduction - Introductory Presentation on the draft KING IV Code deals with the Philosophy Underpinning the new KING IV CODE. Further presentations are to follow
The concept, scope, significance and need for compliance management
• Establishment of Compliance Management Framework
• Compliance Management process
• Systems approach to compliance management
• Apparent, Adequate and absolute compliance
• Role of Company Secretary in compliance management
The KING IV CODE on Corporate Governance In South Africa Part I Introduction - Introductory Presentation on the draft KING IV Code deals with the Philosophy Underpinning the new KING IV CODE. Further presentations are to follow
The concept, scope, significance and need for compliance management
• Establishment of Compliance Management Framework
• Compliance Management process
• Systems approach to compliance management
• Apparent, Adequate and absolute compliance
• Role of Company Secretary in compliance management
Understanding general rules around corporate governance
Understanding the duties of directors
Understanding the impact of strong electoral policies and guidelines for elected officials
it include meaning importance objective merits of corporate governance because in today`s scneario it is very important for company to work with the principle of corporate governance for the survival of the company.
The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).
The corporate governance framework consists of
(1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards,
(2) procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles, and
(3) procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances.
How to implement a good corporate governance?Adam Greene CPA
The concept of corporate governance refers to a set of principles and standards that determine, on one hand, the design, integration, financial planning and operation of the governing bodies of companies .
Understanding general rules around corporate governance
Understanding the duties of directors
Understanding the impact of strong electoral policies and guidelines for elected officials
it include meaning importance objective merits of corporate governance because in today`s scneario it is very important for company to work with the principle of corporate governance for the survival of the company.
The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).
The corporate governance framework consists of
(1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards,
(2) procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles, and
(3) procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances.
How to implement a good corporate governance?Adam Greene CPA
The concept of corporate governance refers to a set of principles and standards that determine, on one hand, the design, integration, financial planning and operation of the governing bodies of companies .
CH- 3 CONCEPTUAL FRAMEWORK OF CORPORATE GOVERNANCE Bibek Prajapati
CH- 3 CONCEPTUAL FRAMEWORK OF CORPORATE GOVERNANCE
FOR CS PROFESSONAL, CA, CMA
Definitions of Corporate Governance
• ICSI Principles of Corporate Governance
• Need for Corporate Governance
• Theories of Corporate Governance
• Evolution and Development of Corporate Governance
• Elements of Good Corporate Governance
The root of the word Governance is from ‘gubernate’, which means to steer. Corporate governance would mean to steer an organization in the desired direction. The responsibility to steer lies with the board of directors/governing board.
• Kautilya’s Arthashastra maintains that for good governance, all administrators, including the king were considered servants of the people. Good governance and stability were completely linked. There is stability if leaders are responsive, accountable and removable. These tenets hold good even today.
• Corporate Governance Basic theories: Agency Theory; Stock Holder Theory; Stake Holder Theory; Stewardship Theory
OECD has defined corporate governance to mean “A system by which business corporations are directed and controlled”. Corporate governance structure specifies the distribution of rights and responsibilities among different participants in the company such as board, management, shareholders and other stakeholders; and spells out the rules and procedures for corporate decision making. By doing this, it provides the structure through which the company’s objectives are set along with the means of attaining these objectives as well as for monitoring performance.
Corporate governance is "the system by which companies are
directed and controlled". It involves regulatory and market
mechanisms, and the roles and relationships between a
company’s management, its board, its shareholders and other
stakeholders, and the goals for which the corporation is
governed. In contemporary business corporations, the main
external stakeholder groups are shareholders, debt holders,
trade creditors, suppliers, customers and communities affected
by the corporation's activities. Internal stakeholders are the
board of directors, executives, and other employees.
Notes of Module 5 Corporate Governance
Content
Concept of Corporate Governance
Corporate Governance in India
Objective of Corporate Governance
Features of Corporate Governance
Elements of Corporate Governance
Importance of Corporate Governance
Important Issues in Corporate Governance
Corporate Governance and Agency Theory
Reforming Board of Directors
*Birla Committee
*Naresh Candra Committee
*Narayana Murthy Committee
Bibliography
www.google.com
related materials
corporate governance and role in strategic managementzeba khan
describes the concept of corporate governance along with need and benefits of corporate governance. highlights the role and importance of corporate governance in strategic management.
OBJECTIVES OF CORPORATE GOVERNANCE
● To enhance long term Shareholders value
● To Protect shareholders interest
● To conduct the affairs of the company in a manner that ensure
fairness to customers, employees, investors, vendor. government
etc.
● To Maximize shareholders value
● To build up confidence and increasing the thrust of stakeholders
● To enhance efficiency and effectiveness through fair and transparent means
● To shape the growth and the future capital market
● To Minimize securities scam
2. Corporate Governance
"Corporate governance is about maintaining an
appropriate balance of accountability between three
key players: the corporation's owners, the directors
whom the owners elect, and the managers whom the
directors select.
Accountability requires not only good transparency, but
also an effective means to take action for poor
performance or bad decisions."
3. Corporate Governance
Corporate governance is about commitment to
values and ethical business conduct.
It is about how an organization is managed.
This includes its corporate and other structures,
its culture, policies and the manner in which it
deals with various stakeholders.
4. Corporate Governance
Accordingly, timely and accurate disclosure of
information regarding the financial situation,
performance, ownership and governance of the
company is an important part of corporate
governance.
This improves public understanding of the structure,
activities and policies of the organization.
Consequently, the organization is able to attract
investors, and enhance the trust and confidence of
the stakeholders
5. Corporate Governance
– Set of mechanisms used to manage the
relationships (and conflicting interests) among
stakeholders, and to determine and control the
strategic direction and performance of
organizations (aligning strategic decisions with
company values)
Effective CG interest to nations as it reflects
societal standards
6. Corporate Governance
“ An internal system encompassing policies, processes and
people, which serves the needs of shareholders and other
stakeholders, by directing and controlling management
activities with good business objectivity, accountability and
integrity.
It is a system of structuring, operating and controlling a
company with a view to achieve long term strategic goals to
satisfy shareholders, creditors, employees, customers and
suppliers, and complying with the legal and regulatory
requirements, apart from meeting environmental and local
community needs.
7. Corporate Governance
The perceived quality of a company's corporate
governance can influence its share price as
well as the cost of raising capital.
Sound corporate governance is reliant on
external marketplace commitment and
legislation, plus a healthy board culture which
safeguards policies and processes.
8. Corporate Governance in India
In India, the Confederation of Indian Industry (CII) took
the lead in framing a desirable code of corporate
governance in April 1998.
This was followed by the recommendations of the
Kumar Mangalam Birla Committee on Corporate
Governance.
This committee was appointed by the Securities and
Exchange Board of India (SEBI).
The recommendations were accepted by SEBI in
December 1999, and are now incorporated in Clause
49 of the Listing Agreement.
9. Corporate Governance in India
SEBI also instituted a committee under the
chairmanship of N. R. Narayana Murthy which
recommended enhancements in corporate
governance. SEBI has incorporated the
recommendations made by the Narayana
Murthy Committee on Corporate Governance
in clause 49 of the Listing Agreement. The
revised clause 49 was made effective from
January 1, 2006.
10. Principles of corporate governance
Rights and equitable treatment of shareholders:
Organizations should respect the rights of shareholders
and help shareholders to exercise those rights.
They can help shareholders exercise their rights by
effectively communicating information that is
understandable and accessible and encouraging
shareholders to participate in general meetings.
11. Principles of corporate governance
Interests of other stakeholders:
Organizations should recognize that they have
legal and other obligations to all legitimate
stakeholders.
12. Principles of corporate governance
Role and responsibilities of the board:
The board needs a range of skills and
understanding to be able to deal with various
business issues and have the ability to review
and challenge management performance.
It needs to be of sufficient size and have an
appropriate level of commitment to fulfill its
responsibilities and duties.
13. Principles of corporate governance
Integrity and ethical behavior:
Ethical and responsible decision making is not
only important for public relations, but it is also
a necessary element in risk management and
avoiding lawsuits.
Organizations should develop a code of conduct
for their directors and executives that
promotes ethical and responsible decision
making.
14. Principles of corporate governance
Disclosure and transparency:
Organizations should clarify and make publicly known
the roles and responsibilities of board and
management to provide shareholders with a level of
accountability.
They should also implement procedures to
independently verify and safeguard the integrity of
the company's financial reporting.
Disclosure of material matters concerning the
organization should be timely and balanced to
ensure that all investors have access to clear, factual
information.
16. corporate governance controls
EXTERNAL
• competition
• demand for and assessment of performance
information (especially financial statements)
• government regulations
• labour market
• media pressure