Submitted by : Ab Xy Vz
Rights of Shareholders Interest of stakeholders Good Faith Trust Controls Disclosure Commitment
Enhances performance of companies Enhances access to capital Enhances long term prosperity. Provides a barrier to corrupt dealingslimiting discretionary decision making, increasing oversight, introducing Codes of Ethics etc Impacts on the society as a whole: Better companies, Better societies.
The proper governance of companies will become as crucial to the world economy as the proper governing of countries.
James Wolfensohn President of WB, 1999
sector level
Individual firms
Generally derived from the private sector Ensures public accountability Promotes responsive and accountable institutions Good financial management of resources Good stewardship
Responsibility to protect the wealth of the state and its citizens Maintain and safeguard it in the interest of the citizens
GLOBAL COMPETITION: Indian companies can gain global competiton by improving their governance policies. Well governed companies like INFOSYS ,WIPRO , etc have proved that corporate governance is essesential for success at global level SCAMS: There have been several scams both in stock market and corporate sector in India which shows the need of corporate governance.
FOREIGN CAPITAL: Indian companies which wanted to raise capital abroad had to adopt appropriate corporate governance reforms to achieve international standards of accounting and reporting
FOREIGN INSTITUTIONAL INVESTORS : In the last few decades ,funds flow from foreign institutional investors in Indias capital markets has steadily increased. One of main reasons for growing confidence in Indian stock markets has been better corporate governance.