Corporate governance is the system of rules and practices by which companies are directed and controlled. It ensures balance between economic and social goals and between individual and communal goals. Recent developments in corporate governance include the Sarbanes-Oxley Act in response to corporate fraud, and reports in the UK and India to strengthen board independence and audit functions following corporate failures.
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Corporate governance is the system of rules and practices by which companies are directed and controlled. It ensures balance between economic and social goals and between individual and communal goals. Recent developments in corporate governance include the Sarbanes-Oxley Act in response to corporate fraud, and reports in the UK and India to strengthen board independence and audit functions following corporate failures.
Corporate governance is the system of rules and practices by which companies are directed and controlled. It ensures balance between economic and social goals and between individual and communal goals. Recent developments in corporate governance include the Sarbanes-Oxley Act in response to corporate fraud, and reports in the UK and India to strengthen board independence and audit functions following corporate failures.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online from Scribd
Corporate governance is the system of rules and practices by which companies are directed and controlled. It ensures balance between economic and social goals and between individual and communal goals. Recent developments in corporate governance include the Sarbanes-Oxley Act in response to corporate fraud, and reports in the UK and India to strengthen board independence and audit functions following corporate failures.
Copyright:
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CORPORATE
GOVERNANCE. CORPORATE GOVERNANCE.
Corporate governance – field in management that explores ways to
secure efficient management of corporations – by use of mechanisms such as organizational design & legislation.
It is concerned with – striking the balance between economic & social
goals & between individual & communal goals.
Corporate Governance framework – to encourage efficient use of
resources.
Corporate Governance aim – align the interests of individuals,
corporations & society. Corporate governance is about commitment to values and about ethical business conduct.
Timely and accurate disclosure of information regarding the financial
performance, ownership and governance of the company is an important part of corporate governance. CORPORATE GOVERNANCE – NEW DEVELOPMENTS.
Over the past decade, various countries have issued
recommendations for corporate governance. Compliance with this is generally not mandated by law, although codes that are linked to stock exchanges sometimes have a mandatory content. Sabanes – Oxley Act, signed by the U.S President George W. Bush into law in July 2002, brought about sweeping changes in financial reporting. Perceived to be the most significant change to federal securities law since the 1930’s. Besides directors and auditors, the Act has also laid down new accountability standards for security analysis and legal counsels. This act was enacted in response to Enron, Health – South & several other recent episodes involving corporate fraud, mismanagement & abuse of power. The act is legally binding only to publicly traded companies but a small part of it is legally binding for unlisted & non profit companies. The Higgs Report on non- executive directors and the Smith Report on audit committees, both published in Jan 2003, form part of the systematic review of corporate governance being undertaken in the UK and Europe.
This is because of recent corporate failures.
Enhancing the effectiveness of the non- executive directors and
switching the key audit relationship from executive directors to an independent audit community can help eradicate some of these corporate failures. In India , the Confederation of Indian Industry (CII) took lead in framing a desirable code of corporate governance in April 1998. Followed by recommendations of the Kumar Mangalam Birla Committee on Corporate Governance appointed by the SEBI. Also, an important decision taken in this regard in India is that all listed companies should have 50% independent directors on their board. In addition, the Department of Company Affairs, Govt. of India had constituted a nine-member committee under the chairmanship of Mr. Naresh Chandra, former Indian ambassador to the U.S., to examine various corporate governance issues, and the major recommendations have been implemented.
ZERO TO MASTERY IN CORPORATE GOVERNANCE: Become Zero To Hero In Corporate Governance, This Book Covers A-Z Corporate Governance Concepts, 2022 Latest Edition