Page 26 - Banking Finance October 2020

COVER STORY

CORPORATE

GOVERNANCE

IN INDIA

What is Corporate Governance? of a company and it is very crucial for the existence and
instilling investor confidence in the company. The prime
Corporate Governance is a set of practices with the help of
motive of the Corporate Governance is to increase
which the investors (largely the outside investor) protect
shareholders wealth and maximize the company's long term
themselves from management (insiders). Since the happening
value. It recognizes the undeniable right of shareholders
of Satyam fraud, the Corporate Governance has assumed a
as the true owner of the company.
lot of importance in India. World over a number of such cases
has emerged which bring the limelight to the issue of Corporate governance ensures that adequate disclosures
Corporate Governance e.g. Worldcom, Enron etc. Corporate
are made to stakeholders especially investors of the
Governance includes balancing the varied interest of different
company. It helps in ethically conducting the business of the
stakeholders like financiers, management, investors, company. It helps in attracting capital from inside and
customers, suppliers, community etc.
outside of the country who want to benefit from the growth
Objectives of the Good Corporate of the company. It also promotes transparency,
accountability and fairness in the conduct of business by the
Governance: company. It helps in creating a board at the top that takes
Corporate Governance is one of the most important aspects objective decision for the benefit of all stakeholders. It also
provides an oversight and control of the management by
About the author the board.

Regulatory Framework for Corporate
Manish Yadav
Manager (Research) Governance:
SBI CRM, Gurugram
In India the Corporate governance mechanism has been

26 | 2020 | OCTOBER | BANKING FINANCE