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CORPORATE GOVERNANCE

Prepared byMamta Kumari MBA (FM)

Corporate governance involves a set of relationship between a companys management ,its board ,its stakeholders . Corporate governance also provides the structure through which the objectives of the company are met , and the means of attaining those objectives and monitoring performance are determined.

The definition of corporate governance most widely used is the system by which companies are directed and controlled. CONCEPT OF CORPORATE GOVERNANCE 1.Law and Regulations 2.Interest of stakeholders 3.Ownership 4.Board of director

To promote a healthy environment for long

term investment. To create a trust in corporate and in its abilities. To promote business development. To improve the efficiency of capital market. To enhance the effectiveness in the service of the real economy.

There are three benefits of corporate governance: 1. To Companies : Corporate governance principles can benefit the owners and managers of companies and increase transparency by improving access to capital and financial markets.

The significance of corporate governance is now widely recognized corporate governance principles have been associated increasingly with issue of competitive. Corporate citizenship and social environmental responsibility , transparency , accountability and corruption free process.

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