CORPORATE GOVERNANCE
CORPORATE GOVERNANCE IS
ABOUT PROMOTING CORPORATE
FAIRNESS , TRANSPARENCY AND
ACCOUNTABILITY.
- James D Wolfensohn
{Models of Best Practices}
Corporate governance deals business transactions and
framework
of company operations with respect to ethical standards .
Stakeholders
Industrial
Customers Management Employees Government bodies
EVOLUTION OF CORPORATE GOVERNANCE IN
INDIA
• The Indian corporate scenario was more or less stagnant till early 90s
• The position and goals of the Indian corporate sector has changed a lot after the liberalization
Of 90s
• India’s economic reforms made a steady progress in 1994
• In 1996 , Confederation of Indian industry (CII) , took a special initiative on corporate
Governance
• The objective was to develop and promote a code for corporate governance to be adopted
And followed by Indian companies , be these in the private sector , public sector , banks ,
Financial institutes all of which are corporate entities .
Companies Amendment act 2000 introduced :
• Setting up audit committee
• Directors responsibility Statement
Clause 49 came into effect in year 2005:
• For Indian stock exchange
• For improvement in corporate
governance
Companies act 2013 for corporate governance :
• Ethical standards
• Best management practices
• Distribution of wealth
• Dischage of social responsibility
SCAMS WHICH AFFECTED CORPORATE
GOVERNANCE
Scams Subject Amount Year
Satyam Accounting scandal 7000 cr 2008
NESL & FTIL Corporate scandal 5600 cr 2013
Ranbaxy and sun Accounting scandal 3000 cr 2011
pharma
Quest Corporate scandal 6600 cr 2002
communication
International inc.
REGULATION OF CORPORATE GOVERNANCE
• Corporate governance primary regulation are SEBI
(Security exchange board of India )
• Listing obligations and disclose requirement (LODR) 2015 was imposed a range
of Requirement on listed companies.
• SEBI is the regulatory authority having jurisdiction over listed companies with
Rules and guidelines
AFTER GOOD REGULATION OF CORPORATE
GOVERNANCE THIS
120
yess no DATA
100
17 19
12
IS
80
60
ACCORDIN
40 83 81
89 G
20 TO
0
LATIN AMERICA US/EUROPE ASIA
WORLD
BANK
WHAT ARE CORPORATE GOVERNANCE
PRACTICES
• CORPORATE GOVERNANCE PRACTICES
ARE A SET OF PRINCIPLES OR NORMS THAT ARE
RELATED TO THE INTERNAL MANAGEMENT OF
COMPANIES.
Successful company
Effective practices of
Corporate governance
PRACTICES
• Governance Frameworks
• Governance Documentation
• Policies in line with law and applicable regulations
• Documenting processes and procedures
• Effective board reporting
• Agenda and minutes
• Director training and board evaluations
• Subsidiary governance policies
Statement of corporate
Governance practices Shareholders
Shareholder’s
Auditor
Appoint
Elect Report
Corporate
Audit
Governance
Committee
Committee
Appoint Appoint
Board of directors
Human Risk
Resource Committee
committee
Appoint
Management
Structure of corporate governance
• The corporate governance structure specifies the distribution of rights and
responsibilities among different stakeholders such as the board, managers or
shareholders, and spells out the rules and procedures for decision-making
in corporate affairs.
Corporate governance
Transparency
Accountability
Responsibility
Fairness
Fundamental pillar of corporate governance
HDFC Bank ( private banking and financial services )
It takes care of long term intrest of shareowners
and help to win public intrest
Bank has been successful in achiving
‘ CRISLI GVC Level 1 ‘ rating for
Last 2 consecutive years
HDFC bank is considered as best managed boards
THANK-YOU
Just like this presentation
A company is colorless without corporate governance
This presentation was presented by the team of : Jainam jain
Bablu japale
Aastha jogani
Jeet kahar
