SANT GADGE MAHARAJ COLLEGE

OF
COMMERCES & ECONOMICS
Name : Dharmendra Mishra
Roll no: 711

Div : A

Topic
corporate governance for
cooperative bank

Synopsis
Corporate governance provides a systematic guidance
to the business world of India, to help them to carry
good corporate practices.
These practices deal with transparency, accountability
and the fairness with which business need to be
governed.
The concept of corporate governance has been
gaining increasing importance on the backdrop of
global competition and at the same time it is under
close scrutiny of the regulatory bodies in India.
The project begins with underlining the objectives of
the study.

Corporate Governance for

Cooperative Bank

Introduction
Cooperative banks were established in India to facilitate rural
credit, and to full fill the needs of small farmers and
businessmen
They were popular with middle and lower income groups
interest rates .
In 2001-2002, many cooperative banks were rocked by scams.
1990s, none of the public or private sector banks were willing
to deal with cooperative banks

objectives
Why there should be a governance
over the activity of cooperative
banks
Is banks are following the proper
rules and regulation of government &
RBI
Study of Committee made by
Cadbury for his financial problem
under the corporate governance

Significance and limitations

Is cooperative banks are properly
following a rules and regulation and
it should be ethical for all
consumers , employees as well as
share holder of bank.

Concepts of Governance
The term corporate governance has come to mean by
two things.
The processes by which companies are directed and
controlled.
A field in economics, which studies the many issues
arising from the separation of ownership and control.

GOVERNANCE V/S CORPORATE

GOVERNANCE
What is Governance: The term governance is common is used to mean the way
people are governed and the way the affairs of the state are
administered and regulated.
This concept, drawn from the public administration, has
received increasingly greater attention in business world in
the sense of direction and control of companies by their top
management.
Corporate governance means the idea of ensuring proper
management of companies through the institutions and
mechanisms available to the shareholders.

Principles
Key elements
Honesty,

Trust
Integrity,
Openness,
Performance orientation,
Responsibility
Accountability,

HISTORICAL PERSPECTIVE OF
CORPORATE GOVERNANCE
Highlight control failures that had allowed several
major corporations to make illegal political
contributions and to bribe government officials. This
led to the development of the Foreign and Corrupt
Practices Act of 1977 in USA that contained specific
provisions regarding the establishment, maintenance
and review of systems of internal control& external
control

EMERGENCE OF CORPORATE
GOVERNANCE
The term Corporate Governance has found importance only
since the decade of the 1980s. It is mainly due to the
financial scandals
where billions of pounds were lost. Notable cases of the
collapse of corporations were BCCI, Polly Peck and the
pension funds of the Maxwell Communications Group.
The focus on the issues of corporate governance culminated
in the Cadbury Report on the financial aspects of corporate
governance in 1992, the Greenbury Report on directors'
remuneration in 1995, the Preliminary and Final Hampel
Reports on corporate governance in 1997 and 1998.

NEED FOR CORPORATE

GOVERNANCE

GLOBALIZATION
CONSOLIDATION
COMPETITION
TECHNOLOGY

RECOMMENDATIONS OF
COMMITTIES
CADBURY COMMITTEE
Relating to the Board of Directors these are
Relating to the Non-executive Directors
recommendations are
For the Executive Directors the recommendations are

CII- Confederation of Indian

Industries
In 1996, CII took a special initiative
on Corporate Governance
Board of Directors

Recommendation on CII

Single Tier System

Appointment Of Non-Executive Directors
Cap On Directorship
Role Of Non-Executive Directors
Key information that must be reported to and placed
before the board must contain
Setting Up Of Audit Committee

REGULATORY FRAMEWORK:
LEGAL COMPLAINCE
SEBI Guidelines On Corporate
Governance

Board Of Directors :
Audit Committee:
Remuneration Of Directors
Board procedure
Management
Shareholders

Report On Corporate
Governance

Board Of Directors
Audit Committee
Remuneration Committee
Shareholders Committee

RBI GUIDELINES ON CORPORATE

GOVERNANCE
FOR
Cooperative bank BANKS

On July 2, 2004, RBI issued draft guidelines on

ownership and governance in private sector banks in
India. These guidelines were placed in the public
domain for wider debate and feedback.
The RBI issued final policy guidelines on 28 th
February 2005 after taking into account the feedback
received. It is considered necessary to lay down a
comprehensive framework of policy in a transparent
manner relating to corporate governance in the
Indian private sector banks

Guidelines

Minimum capital
Shareholding
Directors and Corporate Governance
Due diligence process
Transition arrangements
Continuous monitoring arrangements

Governance Structure
Meetings of the Central Board and its Committee
Directors/Members of the Central Board / Local
Boards Changes
Nominations
Appointments
Retirements/Resignations
Appointment / Retirement of Executives
Visits by Foreign Dignitaries

Annexure

CONCLUSION

Researcher researched that the bank which he visited there he

found the bank follow the corporate governance of RESERVE
BANK OF INDIA UNDER THE ACT
And the employees get the salary on the monthly basis , there I
found the company has minimum numbers of employees and
no other branches the bank has
And minimum liabilities and loan and advances are on the
bank
The bank have get (B) grade in auditing report of RBI

BIBLIOGRAPHY
The whole project is with the courtesy of the following books,
and sites :
Books:Supplement to RBI bulletin September 2013
Reserve Bank of India (Annual Report)

GOVERNANCE,DEVELOPMENT & ORGATIONAL,MANAGEMENT

Websites:http://www.google.co.in/url?sa=t&rct=j&q=&
esrc=s&source=web&cd=1&ved=0CCoQFjAA&url=http%3A%2F%2Fwww.iimah
d.ernet.in%2F~jrvarma%2Fpapers%2Fiimbr9-4.pdf&ei=3juWUvykNIe4rg
fRyYCYDg&usg=AFQjCNEf0kIeVdz6V4B0lmkVDD_Me9DgoA&sig2=zASrBoh-0
8cqos6MS3bqQ&bvm=bv.57155469,d.bmk
SANMITRA SAHAKARI BANK MARYADIT
BANK CHAIRMAN : VISHWAS MHAMBRE

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