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Vol-2, Issue 4
April 2013
I. INTRODUCTION
Asian financial crises in 1997 severely affected the economies
of South Korea, Thailand, and Indonesia by the exit of foreign
capital. 1 As the corporations have grown to commendable
heights in terms of power and control over different
dimensions of society, governing them in the interests of
shareholders and society is a big task. Corporations need to be
governed by aligning the interests of state, society, and
shareholders. To overcome these challenges several corporate
governance mechanisms are evolved. (N. Balasubramanian,
2012)
http://www.oecd.org/daf/corporateaffairs/corporategovernanceprinciples/356
39607.pdf
3
Sungho Choi, Iftekhar Hasan, Maya Waisman 3(2009)
http://en.wikipedia.org/wiki/1997_Asian_financial_crisis
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April 2013
of any failure of bank not only the shareholders but the entire
economy will be affected.
2.
4
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3.
4.
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April 2013
IV. METHODOLOGY
Annual reports of Andhra bank from 2004-05 to 2011-12 are
examined for the analysis. Besides the data related to CG has
taken from Prowess (CMIE database). Corporate governance
index has been prepared based on 17 parameters. Weights are
given to each parameter and bank weights are compared with
this index.
Audit committee
The composition of the audit committee of the board is
adequate in all the years starting from 2004-05 to 2011-12.
The composition consists of chairman and members of 1, 4
consistently. The number of board meetings held increased
consistently and maximum number is 63 in the year 2011-12.
The percentage of attendance also increased consistently. The
numbers of audit committee meetings held are 38, 45, 40, 50,
46, 49, 45 and 63 during 2004-05 to 2011-12 respectively.
Management committee
Corporate Governance Practices in Andhra Bank
The composition and participation of the members in the
meeting is disclosed from 2004-05 to 2011-12. There was an
increasing trend in the number of management committee
meetings held. In 2004-05 98 meetings were held and 88%
were attended, in 2005-06 105 meetings were held and 88% of
the members attended and out of 116 meetings 87% of the
participants were attend during 2006-07, and out of 139
meetings held nearly 87% of members were attended during
2007-08 and during 2008-09 out of 146 meetings held nearly
92% of the participants attended the meetings. During 201011 out of 133 meetings nearly 95% of participants attended
and during 2011-12, 96% of the people attend. This shows a
good governance practice.
V. DATA ANALYSIS
Corporate governance reports basically focus on transparent
management and control systems. Clause 49 identifies various
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a)
b)
Remuneration committee
c)
The complete disclosure of this committee was given from
2006-07. Before that information is not reported in the annual
reports. The number of members in the committee was 4 till
2011-12. The members attended all the meetings and 100%
percentage of attendance is there from 2006-07 to 2011-12.
d)
e)
Information technology committee
f)
h)
i)
Meetings of Large fraud committee
Composition, Participation and Number of Monitoring of
Large Frauds, Customer Service, Nomination Committee
Meetings held (2004-05 to 2011-12) are explained in the
annual reports. The number of members in the committee
increased from 5 (2004-05) to 6 during 20011-12. However
the data is not available for the years 2007-08, 2008-09 and
2009-10. The number of meetings held ranged from 5 to 15.
This shows timely requirement of the committee members and
a positive sign of the corporate governance practices.
j)
k)
l)
m)
Measurement of Corporate governance practices in
Andhra Bank
n)
The measurement of corporate governance practices is done
through a score board. The score board consists of 17
important variables relating to the functioning of the bank
with respect to board structure, disclosures, committees, code
of conduct etc. as per clause of 49 of Listing Agreement.
o)
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[4]
[5]
[6]
[7]
[8]
[9]
[10]
[11]
VI. CONCLUSION
[12]
[13]
[14]
REFERENCES
[1]
[2]
[3]
[15]
[16]
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