Sunday, 8 March 2020

Understanding Corporate Governance


Understanding Corporate Governance

Corporate governance comprehends the framework of rules, relationships, systems and
processes within and by which fiduciary authority is exercised and controlled in
Corporate governance deals with conducting the affairs of a company such that there is
fairness to all stakeholders and that its actions benefit the greatest number of stakeholders.
The initiation of the process of corporate governance in PEs is likely to result into a series
of important benefits.
Corporate ownership structure has been considered as having a strongest influence on
systems of corporate governance, although many other factors affect corporate governance,
including legal systems, cultural and religious traditions, political environments and
economic events.

Corporate governance: It is the system by which businesses are directed and controlled.
Clause 49: A clause introduced by SEBI for the implementation of corporate governance.
Ethical conduct: It refers to the behaviour on standards of right and wrong.
Shareholder’s Wealth: It is equal to the market price of his holdings in shares.
Stakeholders: Who has direct or indirect concerns in the organisation.

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