Beruflich Dokumente
Kultur Dokumente
Presented By :
Amna Ahmad Md. Nadeem Mohd. Navaid Hasan Md. Tabish Shams Mohd. Yasir Yaqub Md. Altamash Junaid
National Perspective: CII Code recommendations (1997) Birla Committee (SEBI) recommendations (2000) Narayana Murthy committee (SEBI) recommendations (2003)
STAKEHOLDER-BASED
Causes of convergence
Growth of European stock markets Harmonization of securities regulation and disclosure rules Transition towards investor capitalism
CADBURY REPORT
Published in 1992 Set up by London Stock Exchange It is a report of committee headed by Adrian Cadbury Sets out recommendations on the arrangement of company boards and accounting systems to mitigate corporate governance risks and failures
HAMPEL REPORT
Published in 1998, by the Hampel committee in UK. Succeeded the Cadbury and Greenbury recommendations. Concerns over the standards of the corporate governance in the UK led to the publication of these three reports. The combined code of these reports have led to significant changes in the accountability aspects of corporate governance.
OECD
The role of the shareholders and their interaction with the management of the Company The role of stakeholders and their importance to the company and the companys corporate social responsibility Openness and transparency- regular evaluation The tasks and responsibilities of the supreme and the central governing bodies
Composition and organisation of the supreme governing body Where the board of directors constitutes the supreme governing body, it should be composed in such a way so as to allow it to perform its managerial tasks, including overall and strategic tasks. Remuneration of members of the governing bodies The principles of the remuneration policy should support a longterm value-creation for the company. Competitive remuneration should be a prerequisite for attracting and retaining competent members of the governing bodies. Financial reporting Each member of the supreme governing body and the executive board is responsible for preparing the annual report and other financial reports.
Risk management and internal control reducing strategic and business risks, ensuring observance of current rules and regulations, ensuring the quality of the basis for management decisions and financial reporting.
Audit Ensuring an independent, competent and thorough audit is an essential element of the work of the supreme governing body.
The Act mandated strict reforms to improve the financial disclosures from the corporations. Sox was incorporated as a response to the accounting scandals in early 2000s.
CONCLUSION
PROBLEM Problem for private companies, remains largely unaddressed IMPROVEMENT Development of norms and guidelines
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