corporate governance need & issues by tabish khan
DESCRIPTION
TRANSCRIPT
![Page 2: corporate governance need & issues by Tabish Khan](https://reader036.vdocument.in/reader036/viewer/2022081907/54c35bba4a795907498b463f/html5/thumbnails/2.jpg)
The system of rules, practices and processes by which a company is directed and controlled.
Definition of 'Corporate Governance'
OECD Principles of CG states “Corporate governance involves a set of relationships between a company’s management, Its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined”
![Page 3: corporate governance need & issues by Tabish Khan](https://reader036.vdocument.in/reader036/viewer/2022081907/54c35bba4a795907498b463f/html5/thumbnails/3.jpg)
It is about promoting corporate fairness, transparency and accountability.
In other words, 'good corporate governance' is simply 'good business'. It ensures:
•Adequate disclosures and effective decision making to achieve corporate objectives;
•Transparency in business transactions;
•Statutory and legal compliances;
•Protection of shareholder interests;
•Commitment to values and ethical conduct of business.
![Page 4: corporate governance need & issues by Tabish Khan](https://reader036.vdocument.in/reader036/viewer/2022081907/54c35bba4a795907498b463f/html5/thumbnails/4.jpg)
It is about commitment to values, about ethical business conduct and about making a distinction between personal and corporate funds in the management of a company.
The aim of "Good Corporate Governance" is to ensure commitment of the board in managing the company in a transparent manner for maximizing long-term value of the company for its shareholders and all other partners.
The fundamental objective of corporate governance is to enhance shareholders' value and protect the interests of other stakeholders by improving the corporate performance and accountability
Further, its objective is to generate an environment of trust and confidence amongst those having competing and conflicting interests.
![Page 5: corporate governance need & issues by Tabish Khan](https://reader036.vdocument.in/reader036/viewer/2022081907/54c35bba4a795907498b463f/html5/thumbnails/5.jpg)
Principles of corporate governance
The Cadbury and OECD reports present general principles around which businesses are expected to operate to assure proper governance.
These are:
• Rights and equitable treatment of shareholders
• Interests of other stakeholders
• Role and responsibilities of the board
• Integrity and ethical behavior
• Disclosure and transparency
Adrian Cadbury
![Page 7: corporate governance need & issues by Tabish Khan](https://reader036.vdocument.in/reader036/viewer/2022081907/54c35bba4a795907498b463f/html5/thumbnails/7.jpg)
Major Issues of Corporate Governance
•Duties of Directors.
•Composition and Balance of the Board.
•Remuneration and Reward of Directors.
•Shareholders 'rights and responsibilities.
•CSR and business Ethics.
![Page 8: corporate governance need & issues by Tabish Khan](https://reader036.vdocument.in/reader036/viewer/2022081907/54c35bba4a795907498b463f/html5/thumbnails/8.jpg)