07-07-2012, 03:31 PM
Corporate Governance, Bank Boards and Directors
Corporate Governance.ppt (Size: 297 KB / Downloads: 84)
Some Definitions
Corporate Governance is the system by which companies are directed and controlled…”
Cadbury Report (UK), 1992
“…to do with Power and Accountability: who exercises power, on behalf of whom, how the exercise of power is controlled.”
A Canadian Definition
the process and structure..to direct and manage the business and affairs of the corporation with the objective of enhancing shareholder value, which includes ensuring the financial viability of the business….”
An OECD Definition
Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders ..also the structure through which objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined.”
An Indian Definition
fundamental objective of corporate governance is the ‘enhancement of the long-term shareholder value while at the same time protecting the interests of other stakeholders.”
Exclusive Accountability toShareholders
Risk-bearing Entrepreneurs
Residual Claimants
Winding-up Ranking: Last in Pecking Order
Boards Appointed by Shareholders
Non-congruence of Stakeholder Interests