Corporate Governance
TABLE OF CONTENTS PAGE 1. INTRODUCTION……………………………………………………………… 1 1.1 Defining Corporate Governance………………………………………… 2 1.2 Principles of Corporate Governance……………………………………. 3 1.3 Importance of Corporate Governance………………………………….. 4 1.4 Objective…………………………………………………………………… 5
1. DIRECTORS & CORPORATE GOVERNANCE in INDIA……………….. 6 2.5 Need for Directors- Who is a Director…………………………………... 7 2.6 Statutory Definition of Director…………………………………………… 7 2.7 Clause 49 of listing agreement by SEBI………………………………… 7 2.8 Role of Independent Director…………………………………………….. 8 2.9 Current Scenario in India…………………………………………………..11
2. A case Study: SATYAM COMPUTER SERVICES……………………….. 13 3.10 Facts of the Satyam Case Scam…………………………………………. 13 3.11 Independent Director’s Profile…………………………………………….. 15 3.12 Mass Resignations of Indian Independent Directors in 2009………….. 16
3. ACADEMIC PERSPECTIVES ON THE ROLE OF INDEPENDENT DIRECTORS…………………………………………………………………….. 19 4.13 Companies Bill 2009- Duties & Responsibilities…………………………. 19 4.14 Watchdog for Public Shareholders………………………………………... 22 4.15 Strategic Advisor to the Controlling Shareholder………………………… 22 4.16 Judicial Interpretations in India…………………………………………….. 23
4. CONCLUSION & RECOMMENDATIONS……………………………………..26 * Independent Directors & Vicarious Liability…………………………….26 * Limitations- Need for Stricter Legal Norms……………………………..26 * Research Proposals……………………………………………...……….27 BIBLIOGRAPHY…………………………………………………………………..29
1. Introduction:
Corporate governance is an era that has grown rapidly in the last few years. The global financial crisis, corporate scandals and collapses, and public concern over the apparent lack of effective boards and
1. DIRECTORS & CORPORATE GOVERNANCE in INDIA……………….. 6 2.5 Need for Directors- Who is a Director…………………………………... 7 2.6 Statutory Definition of Director…………………………………………… 7 2.7 Clause 49 of listing agreement by SEBI………………………………… 7 2.8 Role of Independent Director…………………………………………….. 8 2.9 Current Scenario in India…………………………………………………..11
2. A case Study: SATYAM COMPUTER SERVICES……………………….. 13 3.10 Facts of the Satyam Case Scam…………………………………………. 13 3.11 Independent Director’s Profile…………………………………………….. 15 3.12 Mass Resignations of Indian Independent Directors in 2009………….. 16
3. ACADEMIC PERSPECTIVES ON THE ROLE OF INDEPENDENT DIRECTORS…………………………………………………………………….. 19 4.13 Companies Bill 2009- Duties & Responsibilities…………………………. 19 4.14 Watchdog for Public Shareholders………………………………………... 22 4.15 Strategic Advisor to the Controlling Shareholder………………………… 22 4.16 Judicial Interpretations in India…………………………………………….. 23
4. CONCLUSION & RECOMMENDATIONS……………………………………..26 * Independent Directors & Vicarious Liability…………………………….26 * Limitations- Need for Stricter Legal Norms……………………………..26 * Research Proposals……………………………………………...……….27 BIBLIOGRAPHY…………………………………………………………………..29
1. Introduction:
Corporate governance is an era that has grown rapidly in the last few years. The global financial crisis, corporate scandals and collapses, and public concern over the apparent lack of effective boards and
References: * Clarke. Thomas, International Corporate Governance, p. 36, 2007. * Clarke. Thomas, International Corporate Governance, p. 56, 2007. * Gilson & Gordan, Controlling Shareholders and Corporate Governance, vol. 119, p. 1641, April 2009 * Goswami, 2000, in Solomon, 2010, (Jill Solomon, Corporate Governance and Accountability, third edition, p * Mallin, Christine A., Corporate Governance, third edition, 2010 * Mallin, Christine A., Corporate Governance, third edition, p * The Cadbury committee, 1992, * The Companies Act 1956 * The SEBI Act 1992 * The Organization of Economic Corporation and Development (OECD), (Principals of corporate governance, 2004) ARTICLES * After The Satyam Scam 7 Ways to Clean Up the Market January 13, 2009 * Clarke, D.C., Three Concepts of the Independent Director, 32 Del. J. Corp. L. 2007 * Et al, Rafael La Port., Investor Protection and Corporate Governance, 58 J * Guha, R. & Kumar, J. S., Satyam’s Raju Brothers Jailed, Wall Street Journal, Jan. 10, 2009 * Monks * Satyam’s Independent Directors had Raised Concerns over the Deal, The Hindu Business Line, Dec. 19, 2008 * The Directors Database Chronological Cessation Index * The Economist, Jan. 10, 2009, p. 57 * Tibken, S., Satyam Scandal Shocks IT Sector, Wall Street Journal, Jan * Gilson, Ronald J., controlling shareholders and corporate governance: complicating the comparative taxonomy at http://ssrn.com/astract=784744, on 12 Nov. 2012. * http://articles.timesofindia.indiatimes.com/2010-08-07/hyderabad/28317553_1_satyam-scam-ch-srisailam-invoice-management-system, on 16 Nov. 2012. * http://legalservicesindia.com/article/article/independence-of-independent-directors-in-india-992-1.html, on 14 Nov. 2012. * http://www.businessdictionary.com/article/618/why-is-corporate-governance-important/, on 12 Nov. 2012. * http://www.ecgi.org/codes/documents/hampel23.pdf, on 14 Nov. 2012 * http://www.ecgi.org/codes/documents/hampel23.pdf, on 14 Nov * http://www.lawisgreek.com/role-independent-directors, on 10 Nov. 2012. * http://www.mahindrasatyam.com/, on 2 Nov. 2012. * Tabulated based on data available at http://directorsdatabase.com * www.encycogov.com, Mathiesen, 2002, on 14th Nov * www.sebi.gov.in, on 14 Nov. 2012. * Financial times (1997) * 340 Independent Directors Quit in 2009, Indian Express, May 14, 2009