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Question1: What is a code of good Corporate Governance? Do you consider it can serve any useful purpose in improving governance? Support y
with
Question 2: Chairman of the BOD has a pivotal role in the performance of BOD, Do you agree? Support your answer with reasons and
Question 3: What are the three major committees of the Board? Discuss their role and us
Question 4: The concept of the Chairman cum Managing Director in Public Sector Undertakings has been in vogue for quite some time. This d
purpose of Chairman of Board for Directors exercising checks and balances on the performance of Managing Director / Chief Executive Office
Question 5: Write short notes on any three of the
a. Legal aspects and liabilities of
b. The Cadbury Code of best
c. Corporate social Res
d. CII’s Recommendation on Corporate g
e. Sexual Harassment in work
Question6: The CII’s desirable code of corporate governance stresses more on the role of Board of Directors and therefore has limited values.
Question7: Performance evaluation of the BOD seems to be an Essential component in improving corporate governance. Do you agree? Who sho
evaluation and
Question8:- Discuss the various developments in the field of Corporate Governance in India in recent Years?
Assignment
Case
Ram KrishanDhir (RKD) was extremely happy to be selected as the corporate MD of the United Group at Indore. The United Group consiste
industries, all located within 30 Km of the corporate office, Indore. Madhya Pradesh Medical Equipment’s Ltd. (MPMEL) was one of the industr
group. Each industry of the group had its own CEO who was directly answerable to the corpor
MPMEL established in 1980, with Japanese collaboration, had soon earned a name for its quality and customer responsiveness. By 1983, with
strength of around 300 MPMEL with very harmonious industrial relations, and the latest technology had registered a good turn over o over Rs. 80 C
there the success story ended. Mr. Raj Anand, The original promoter of the group died in an air crash and his eldest son Mr. ViratAnand (VA) took
entire business in January, 1984. Virat was a spoiled brat, lived in luxury, had no qualms about swindling money wherever possible and had lea
and considerations for the professional management and the e
MPMEL`s down ward journey had truly begun. By 1987, it had witnessed change of 4CEOs and 12 middle /junior levels managers. Most of pres
managers were handpicked by Virat and groomed in his culture of scant concern for the employees and the organizational growth. In the following
MPMEL lost many of its major customers, Performance, quality of its medical equipment and industrial relations deteriorated. It was defaulting o
payment to the lending bankers and even the salary payment to its employees was often delayed and even withheld. By February 1989, when RKD
over as corporate MD, the situation
a.Two of its leading lending banks (Syndicate Bank and Bank of Baroda) had stopped further payments & over drafting to MPMEL and had served
MPMEL for clearance of its
b.Four of its old and professional directors of the Board of Directors, had resigned and replaced by cronies and relative
c.Industrial relations in the MPMEL were bad and there was total lack of trust between the management and employees. A number of local “DADA
control of the employees and MPMEL employees had gone on a violent strike in November, 1988 for irregular payment of salaries, adhoc prom
inaction of outstanding issues. The striking employees had physically beaten up the CEO and some other managers and damaged a number of bui
windows. They had however, spared the main air- conditioned production complex. The strike had ended by police intervention and signing of a L
Agreement (LTA) with the Union employees. Promised actions by the management were
d.The other two industries of the United Group were only slightly better but heading d
e.MPMEL was still operative and producing good quality equipment at about 50% capacity. The rejection rate however, had increased considerably
was a large dump of rejected quality equipment. The quality control department was totally disheartened due to dismissal of its good manager s
ago without any replacement and no one was paying any attention to their concerns and su
f.The turnover in 1988 had dropped to Rs. 36
RKD, an MBA and an ex DIG Police, with an excellent track record as a good administrator and a person of high integrity was determined to brin
major change in MPMEL. Within a month of his taking over, after his discussions with a section of employees and their union leaders, senior
some experts (two of them were ex-MDs) and the Chairman of the BOD, he realized that their problems had nothing to do with their products and t
but they seem to weave around the management of Human Resources and excessive withdrawal of funds by the Chairman. There were strong ind
continuing rumblings, dissatisfaction among employees and lack of faith in management despite the LTA.
Q1. Analyze the situation, as RKD, as you see it and suggest a course of action you propose t
Q2. What actions in particular you plan to take to change the culture of MPMEL?
Assignment- C
1. Essence of Corporate Governance is—
1. Effective accountability
2. Good management
3. Codes of conduct
4. Transparency
1. Liberalization of economy
2. Deregulation of industry and business
3. Public demand for better performance
4. All the above
5. As per Raja J Chelliah weakness in the system of governance in India can only be remedied through--
1. Stricter laws
2. Movement of moral regeneration
3. Codes of conduct
4. More privatization
1. Society expect so
2. It is in the self inter of the corporate
3. It mitigate pressure and government regulations
4. All the above
1. Values and ethics cannot be typecast into a one - size -fits -all frameworks.
2. The Cadbury Committee of 1992 has erected a convention of severity of standards.
3. c)At the end of the day , giant corporations will continue to dominate society
4. d)None of these
1. Promoters
2. Financial Institutions
3. Individual Investors
4. Ministries of Government of India
9. In the private sector who has the firm hold over the companies?
1. Individual investors
2. Promoters
3. Financial Institutions
4. Customers
10. In the public sector who selects/ appoints the board members?
1. CEO
2. President
3. Chairman
4. Managing Director
1. Government of India
2. FICCI
3. Confederation of Indian Industries
4. None of these
17. The directors appointed by financial institutions on the BOD are called--
1. Non-Executive directors
2. Executive directors
3. Nominee directors
4. Institutional directors
1. 1 January, 1956
2. 1January, 1957
3. 1 Apirl, 1956
4. 1April, 1957
19. One of the terms of reference for SEBI´s committee on corporate governance in May 1999was-
1. 1990
2. 1980
3. 1992
4. 1993
23. Cadbury Committee along with its report published a document which was called--
24. Desirable Corporate Governance in India - A code had recommended that a full board´s meeting agenda item should require at least-------discus
1. 2 days
2. 1 day
3. half a day´s
4. None of these
25. In Indian conditions a voluntary code of Corporate Governance would be more meaningful, which out of the following supported the comment--
1. Greenburg Committee
2. Kumar Mangalam Birla Committee
3. CII National Council
4. Institute of Company Secretaries of India
26. Which out of the following is not expected out of an effective BOD?
1. Transparency of disclosure
2. Accountability to shareholders
3. Dependency of decision making
4. Responsiveness to society
27. Who prepared the report titles "Desirable Corporate Governance in India - A Code "?
1. Government of India
2. FICI
3. CI I` s Task Force
4. UTI
28. The above report was based on the draft report prepared by--
1. Dr. Goswami
2. FICCI
3. Dr. CV Alexander
4. Mr Kumaramangalam
1. Political Interference
2. Vested interests of management
3. Lack of control mechanism
4. Lack of societal pressure
30. Desirable Corporate Governance: A Code (DCGC) recommends that the full board. Should meet minimum of following items--
1. Dr. Goswami
2. Mr. Rahul Bajaj
3. Dr. Omkar Goswami
4. Mr C K Birla
32. The word "value" is derived from the French /Latin word--
1. Valeo
2. Vaelram
3. Valoir
4. Valer
1. Behavioral
2. Perceptual
3. Management
4. Decision
35. The ethics of Corporate Governance is therefore the determination of what is right proper and………………
1. Good
2. Pleasing
3. Just
4. Practical
37. The subject of business ethics is multi- leveled. The three levels normally considered are individual, organization and …………………
1. Government
2. Society
3. Industry
4. Business
38. Misrepresentation is referred as--
39. Ethical issues are truly managerial dilemma they represent a conflict between an organization economic performance and its--
1. Reputation
2. Growth
3. Social / ethical performance
4. Employees job satisfaction
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