Corporate Goveranace

Corporate G everywherenance in India: Disciplining the Dominant Shareholder Issues of incorporate brass have been hotly debated in the United States and Europe over the last decade or two. In India, these issues have dumbfound to the fore only in the last couple of years. The corporate governance literature in the US and the UK focuses on the usance of the Board as a bridge betwixt the owners and the management. In an environment in which ownership and management have rick widely separated, the owners are unable to exercise effective upkeep in line over the management or the Board. The management becomes arrogant and the opus of the Board itself is largely influenced by the likes and dislikes of the Chief Executive policeman (CEO).

In India the Companies Act has made it mandatory for companies to set up a Nominations Committee of the Board to enable the Board to conjure up independent and talented members ,also the mandatory requirement for appointment of the hire Committee of the Board has been strengthened to exercise greater wangle over CEO compensation following widespread complaints that teetotum management pay is disproportionate to functioning, the mandatory requirement of the inspect Committee apart from acting as a impedimenta against financial improprieties and frauds, the audit Committee also enables the Board to keep a pulse on the financial health of the company. In India there is an increasing concern about improving the performance of the Board but the central problem in Indian corporate governance is not a conflict between management and owners as in the US and the UK, but a conflict between the dominant shareholders and the minority shareholders cannot be determined by the board, an effective Board can even off the management. At least in theory, management exercises only such powers as are delegated to it by the Board, but, how can a Board discipline the dominant shareholders from whom the Board derives all its powers? Some of the most glaring... If you lack to get a full essay, order it on our website: Orderessay

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