Objectives Of Corporate Governance

Introduction

The main objective of corporate governance is to regard the protection of investor interest, especially the small investor, the promotion of transparency within business and industry. The system of rules, practices, and processes by which company is directed and controlled for the society to be responsible. Corporate governance is like justice, it must not be done but also be seen to be done; hence the need for good and full disclosure.

Corporate Governance is also about distribution of power, rights and responsibilities among participants like board of directors, shareholders and others stakeholder in order to make right decision for their corporate affairs and serve the society.

Corporate Governance is considered to be an essential

But if company doesn’t follow the right suit which will have to face the disregard for the company within short duration.

Good governance will always positively build the strong network, impact the performance and long-term viability of every company.

e.g.The best example of using good governance as unique selling proposition for branding

Our prime minister Mr.Narendra Modi has rightly recognise good governance and create a campaign which entail about his transparency image in all his working tactics and made accountable decision that all the economic development has to be taken care with young budding “Youth”.

Steps taken from government of India: Bankruptcy code will play a vital role in strengthening creditor’s risks and giving an ability to invoke a default for creditors which will boost an Indian economy. It also give an immense position in the market while lending money by taking precautionary steps like KYC, proper documentation and due diligence of the people which will beneficial for

• Board of directors who are envisaged to perform the monitoring role and are widely regarded as the fiduciaries of the shareholders interest.

• Ownership structure give an information about the structure of an ownership of shareholder that is to be transparent which increase credential of the company.

• Audit committee task is to audit the company performance by providing financial report through financial statement which can use to assess the performance of the company.

• Auditors are the lead actor in the auditing process and provide independent insight by verifying and certifying the accounts which give a true and fair view of the company financial status.

By averaging all the above components which give an perspective about company current situation and practice to be followed that increase the brand image based on positive or negative corporate govenance