Id for India

Introduction The traditional view about corporations as profit maximizing bodies has changed. The modern corporation has come to be perceived as a caring entity, discharging its social and economic obligations. The focus has, thus, shifted from upright profitability to good quality embodied governance system, which is the counselling to create wealth for the society, maintain and preserve that wealth efficiently and share it with stakeholders. Sir Adrian Cadbury, while defining corporate governance, said that it was a system by which companies were directed, controlled, and thus brought into sharp focus the mathematical function of the wag of directors, shareholders and management. The quality, quantity and frequency of financial disclosures, the extent of ferment of fiduciary responsibilities and duties by the board towards its shareholders and stakeholders, accountability and transparency in corporate functioning for maximizing shareholders wealth are the basic inwroughts of corporate governance. Corporate governance is a vast adequate to(p) and our purpose in this piece is to focus only on one aspect of it, namely the role of independent directors in Indian listed companies. SEBIs listing requirement, as per the revised Clause 49, volition be for half a companys board to exist of independent directors.

Well before it became a legal or listing requirement in our country, the Confederation of Indian assiduity in 1998 developed a code for good corporate governance. In todays competitive world, high quality advice, impenetrable judgment and an outside point of view are essential at the board level. So why is the world blaring for independent directors? Because events at Enron, WorldCom, Tyco and now even AIG have b assure doubt on the integrity of managements. Independent directors are so also seen as a check on managements, as an oversight mechanism, apart from the value addition that they bring to board deliberations. There is a very significant difference amid Indian managements,... If you want to get a full essay, order it on our website: Orderessay

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