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The Corporate Management in India has undergone trusty changes since the advancement of fist world war.

The
Joint stock companies recorded high growth after the commencement of 1st world war. Main regions were the
change of attitude in British Govt.. towards industrialization in India. 2nd high demands of industrial goods created
by war, 3rd emergency of India enterprises like Tata's Birlai and Dalmia. But this process of growth was arrested
during the great depression of 1930s. in 1936 companies act was revised and in this revision the emphasis war to
restore the supremacy of boards of director over managing agents the out break of world war 2nd in 1939 and
protection of India industry change the situation. Another major change came in 1947 when 2000 companies with
a capital of 18 crores went to Pakistan after partition.

Development of Corporate Management Pattern During 1913 to 1956 :

The India business man mass adopted the system of managing agencies originally involved by British Business
Man. They formed agency and weaken partner. If company started by the them Indian enterprises like parties,
Hatries and Jujraties inter business in a big way and raised their enterprise to the corporate level.

The Managing Agency System :

The managing agency system and its dominance over corporate mgt in India was study and enquired by various
commission, committee and individuals. These commissions committee revealed that mail practices being resorted
to by managing agents are numerous. But the growth of companies in India was on account of their contribution.
Thus the benefits derived from managing agency system was found to be larger than the losses suffered with their
existence. The system has so far a greater list of success that can be shown by a common management. Indian
industry when they were in invent stage they nourished by the experience managerial knowledge and financial
support of managing agents.

There was vocal demand for evaluation of managing agency system and also for control of managing agency. In
1951 some amendment were introduced which brought some reforms in managing agency system by companies
act 1956. The Govt.. assume extensive power of control and regulation over the working of corporate mgt. in India.

One of the main features of mgt. during the period 1930-56 was concentration of economic power and ownership
of companies inflow hands. There were either family groups or associates groups. In 1951-56, 36 managing agents
were controlling 600 companies in India, more than 250 companies were being control by only 9 leading agents.
In term of controlling the No. of companies Birla's were behind Dalmia, Singatinia's and Thapar's . In other terms it
was found that 100 person were holding 1700 directorship of the companies. 30 of them were in command of 860
directorship .

Although several amendment were made in the companies act relating to the management of companies but the
most important amendment was of 1969 when the old system of managing was abolish forever the amendment
abolish the institution of managing agents and secretary and treasury.

The companies act was amended in 1974 to streamline the administrations the companies to bring them higher
efficiency and social commitment. With evolution of managing agency system the only system adopted by
companies for management is board of director. The board has an option to carry out this function with the help of
managing director. Corporate mgt. structure in India is a board of director and a permutation and combination of
managing directorship/Manager/whole time director. The mgt. of company can be chartered in a pubic manner.
Shareholder

Board of Director

Chief Executive Officer or Managing Director

Executive Director

Executive

In absence of statutory provision competing companies to adopt a properly constituted board and emergence
power given to managing agents are measure development of post independence era. The companies mgt. in
India now completely free from control of any external body like managing agents.

In practice even today management of the company invested in the hands of those share holders who control
nearly 10 to 30% of total share holding. In practice majority share holders taken together have no say in mgt. of
companies in India. Thus, the minority share holders constant the mgt. actual majority share shareholder have no
control over the management.

Another feature is that some business houses still control by some big business houses for instance Tata's, Birla's
Ambani have large no of company no. of company under their control and mgt.
Another distinguish feature of development in corporate mgt. during 80s and 90s there after is that new
entrepreneur whole we can call 1st generation entrepreneur have inter the corporate mgt with there entry the
culture of corporate mgt. has change. The corporate mgt. is becoming more responsible for their social obligation.
For instance the protection of environment observation of every water, and commitments towards social welfare
are now a new thrust areas of mgt. mgt is now subjected to social audit.

"Decentralization of power has been the new development in corporate mgt. Along with participating mgt. decision
making power is being delighted to the lower level. This is also new development.

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