Beruflich Dokumente
Kultur Dokumente
P.S.Swathi SSIM
corporate governance places a strong emphasis on both, economic efficiency and safeguarding the welfare of shareholders. of an effective corporate governance system, within a company and across an economy as a whole, helps to strengthen the economy, create investor confidence, and contribute to social wellbeing.
Presence
The role of good corporate governance is to: set right objectives; chart the right processes of operations and process of governance; ensure ethics in the corporate objectives and practice; develop right kind of people and talent in the organisation; inculcate the culture of ethics amongst people; obey the rules, laws and regulations concerning the business; adopt methods of measures and means to control and regulate within the rules and regulations; and adhere to the environmental laws and regulatory
been developed in different countries and issued either from stock exchanges or corporations or by the associations (institutes) of directors and managers with the support of governments and international organisations.
The aim of these codes and guidelines has been to:
bring transparency and accountability in the functions and decisions; seek to establish accountability standards of the board and management of the company; protect investors interests; care for other stakeholders; and promote investor confidence in the business system.
establish corporate standards to control and report the functions of boards, and on the roles of auditors.
The Code of Best Practice was designed to
high
standards
of
consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities.
2. Protect
the
exercise
of
law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises.
5. Ensure that timely and accurate disclosure is made
on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company.
6. Ensure the strategic guidance of the company, the
effective monitoring of management by the board, and the boards accountability to the company and the shareholders.
review the financial statements of the unlisted subsidiary, in particular its investments.
company follows a treatment that is different from that prescribed in the accounting standards, it must disclose this in the financial statements and the management should also provide an explanation for doing so in the corporate governance report of the annual report.
The company will have to lay down procedures
for informing the board members about the risk management and minimization procedures.
rights issues etc., the company will have to disclose the uses/applications of funds according to major categories as part of quarterly disclosures of financial statements.
The company will have to publish its criteria for
which is prevalent in the US, UK, and many English speaking countries of the erstwhile British Empire.
This model calls for governance by the board of
board to manage the company on a daily basis, he or she needs board approval for certain major
towards the shareholders; however, the by-laws of many companies make it difficult for all but the largest shareholders to have any influence or say over the make up of the board.
Contrary
to the spirit of good corporate governance, individual shareholders are not given the opportunity to choose their nominees to the board.
acquiesces to shareholder interest but also gives priority to the interests of managers, employees, customers, suppliers and the community in general.
The coordinated model encourages innovation
is prevalent in Asian and Latin American countries, where companies owned by families often dominate the market. This business model views the transparency and disclosure norms of the Anglo-American model as exposing the core business financials and strategies to others, which would mostly benefit the competitors and regulators, with few tangible benefits to the organisation. The system is more amenable to self serving gains from business, and vulnerable with regard to ethics and social responsibility. Family-owned companies do not necessarily harm the interests of shareholders because they themselves
whistle-blowing is important; but how they are communicated and practised across the organisation is even more important. It is vital for board members and senior managers to lead by example.
Following trusteeship in order to protect shareholders
independent directors.
Skills to listen to and understand stakeholders
responsibility.