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Corporate Governance

With the growing space of the indian economy and increase in the complexity of business operations, the forms of corporate organisations keep on changing. The thinking of corporate toward shareholders/stock holders have also been changed and now they are trying to fullfill the expectations of stakeholders. Corporate governance is the mechanism by which the values,principles. policies and procedures of a company are inculcated and manifested. Corporate governance is the method by which the aforesaid objectives are achieved. The common corporate goal was '' Prosperity to all ''. According to narration given in Rigveda,''Corporate should work goal as Honybee, which takes the nectar of a flower  without the losing its shape and fragrance and work provided honey for the well being society.


  DEFINITION OF CORPORATE GOVERNANCE

 In a narrow sense, corporate governance involves a set of relationship among the company's management, its board of directors, shareholders and other stakeholders together is  called corporate governance.
    
ORIGIN OF CORPORATE GOVERNANCE 

Corporate governance is a new discipline. This has attracted wold wide attention,particularly  since the 1990s. The concept is assuming great importance of late due to the totally unexpected collapse of a few giant corporation in united states such as world energy leader. India also experienced some financial scandals during 1950s ( LIC ),eighties and nineties and -2001 period such as the mundras' scam involving LIC(1975), Raj Sethias' scandal involving the punjab national bank(PNB) in early1985, Harshad Mehta's mega swindle involving UTI, SEBI and other institutions in 1992, Unit trust is of india's two episode during its then Chairman Mr. Pherwani' pherwani' period and again in 2001,when Mr. Subramanium was Chairman, Ketan parekh fraud involving bank of India and gujarat Co-operative bank in 2001, Telgi's Stamp paper scam and worthwhile Global Trust bank's scam in 2004.
                                                                       

FRAMEWORK OF CORPORATE GOVERNANCE

  1. Governance i the process by which people in power make make decisions that create, destry or maintain social system, structure and process.
  2. Corporate governance are both potential agents for change and also gardians of existing ways of working.
  3. They are a significant part of the Fabric of our society .
  4. The institutions of governance provide a frame work within which the social and economic life of countries is conducted.
  5. The concept of corporate Governance primarily hinges on complete transparency, integrity and accountability of the management .
  6. It provides structures and incentives for the board and management to pursue that interest of the company.


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