Corporate governance refers to the structures and process for the direction and control of companies. Corporate governance concerns the relationships among the management, board of directors (BOD) and other stake holders. Good Corporate governance contributes to sustainable economic development by enhancing the performance of companies and increasing their access to outside capital.
Ø Roles, purpose, nature of Corporate government? –
The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company.
Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place.