Corporate Governance concept

Evolution of Corporate concept

The positions of ownership has changed from that of

an active to passive agent The value of an individuals wealth is coming to depend on forces entirely outside himself and his own efforts The wealth of individuals hs become extremly liquid Wealth is currently in a form which cannot be employed directly by the owner The corporate governed by law has a legal standing independent of owners. The test of effectiveness of governance is the degree to which an organization is achieving its purpose.

 WHY the shareholders outside the firm

in RILand other associates of RIL, did not brought the KrishnaGodavari case in limelight in board meeting as they did with Satyam?????????????????????????

Whistle Blowing mechanism

The corporate governance must become a culture

within the entire organization. The whistle- blowing must start from the top, the board of directors.(Non executive and independent directors) All employees must have access to not only the audit committee but also to non executive and independent directors. SEBI must play active role and it should employ corporate watchers. SEBI should encourage Investors as whistle blowers