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Corporate Governance: Conclusion And Suggestion

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Conclusion And Suggestion
Corporate Governance has been a central issue in developing countries long before the recent spate of corporate scandals in advanced countries. Corporate Governance gained tremendous importance due to economic liberalization and deregulation of industry and business, as well as the demand for a new corporate ethos and stricter compliance with the law of the land. Another important factor that has been responsible for the sudden exposure of the corporate sector to a new paradigm for corporate governance in tune with the changing times is the need and demand for greater accountability of companies to their shareholders and customers.
In India, corporate governance had not been well-understood …show more content…

Thus, the effectiveness with which the Boards discharge their responsibilities determines Britain’s competitive position. They must be free to drive their companies forward but exercise that freedom within a framework of effective accountability. This is the essence of any system of good corporate governance. Corporate Governance is the system by which companies are directed and controlled. Boards of Directors are responsible for the governance of their companies. The shareholders role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place. The responsibilities of the board includes setting the company’s aims, providing the leadership, supervising the management of the business and reporting to shareholders. The board’s action is subject to laws, regulations and the shareholders in general meetings.

With emergence of global competition, corporate India in general has realized that in order to grow, prosper and compete in International markets, they have to consolidate their strengths and run them most effectively in an efficient and transparent manner by adopting the best practices. The corporate India must commit itself to foster a culture of prompt and innovative service provider with customer focus and become a reliable business partner to derive consistent all-round growth in all facets of its …show more content…

It is a system of structuring, operating and controlling a company with a view to achieving long-term strategic goals to the benefits of shareholders, creditors, employee’s customers and suppliers complying with legal and regulatory requirements. The concept of corporate governance is closely related to ISO standards guaranteeing quality practices. This would also include defining the powers of directors, particularly the non-executive, marking available information on the company’s current state of affairs to all the directors and system control to ensure the authenticity, timeliness and effectiveness of

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