Académique Documents
Professionnel Documents
Culture Documents
GOVERNANCE
Responsibility
Transparency
Information
Governance
Structure
What is governance?
Broadly, the way that power is taken on
Good governance is
A transparent decision-making process in
Good governance is
A transparent decision-making process in
Individual
accountability
Individual
accountability
Shared
decision
making
Individual
accountability
Individual
accountability
Individual
accountability
organisation?
How are they made?
How can others participate in this?
Do they participate?
collectively
There are restrictions on one person
becoming more powerful than the others
This doesnt happen accidentally, by
chance or because of good will it has to
be formalised through rules and procedures
Corporate Governance
Corporate Governance is the application of
Corporate Governance
Relationships among various participants
Why Corporate
Governance?
loans
Improved company performance
sustainability
Higher firm valuation and share
performance
Reduced risk of corporate crisis and
scandals
Principles of Corporate
Governance
Accountability
Ensure that management is accountable to
the Board
Ensure that the Board is accountable to
shareholders
Fairness
Protect Shareholders rights
Treat all shareholders including
minorities, equitably
Provide effective redress for violations
Transparency
Ensure timely, accurate disclosure on all
material matters, including the financial
situation, performance, ownership and
corporate governance
Independence
Procedures and structures are in place
Elements of Corporate
Governance
Good Board practices
Control Environment
Transparent disclosure
Well-defined shareholder rights
Board commitment
understood
Board is well structured
Appropriate composition and mix of
skills
practice
Board self-evaluation and training
conducted
Control Environment
Internal control procedures
Risk management framework present
Disaster recovery systems in place
Media management techniques in use
Control Environment
Business continuity procedures in place
Independent external auditor conducts
audits
Independent audit committee
established
Control Environment
Internal Audit Function
Management Information systems
established
Compliance Function established
Transparent Disclosure
Financial Information disclosed
Non-Financial Information disclosed
Financials prepared according to
Transparent Disclosure
Companies Registry filings up to date
High-Quality annual report published
Web-based disclosure
Well-Defined Shareholder
Rights
Minority shareholder rights formalised
Well-organised shareholder meetings
conducted
Policy on related party transactions
Well-Defined Shareholder
Rights
Policy on extraordinary transactions
policy
Board Commitment
The Board discusses corporate
Board Commitment
Policies and procedures have been
Other Entities
Corporate Governance applies to all
Corporate governance in
India
The
Government
of
India's
securities
watchdog, the Securities Board of India,
announced strict corporate governance norms
for publicly listed companies in India.
The
Indian Economy
was
liberalised in 1991.
Securities
and
Exchange
In order to achieve the full potential of
Board of and
India
liberalisation
enable the Indian Stock
Market to attract huge investments from
foreign institutional investors (FIIs), it was
necessary to introduce a series of stock
market reforms.
SEBI, established in 1988 and became a fully
SEBI
On April 12, 1988, the Securities and Exchange Board of
frame a code
members and
each of them
compliance with
Conclusion
As Indian companies compete globally for access to
Thank You