Corporate governance is the system by which businesses are directed and controlled. It is the system that directs activities in a firm and help create a link between the board of directors and shareholders, and lays out their roles and relationship with each other.

Corporate Governance means the way a business is governed. It is the combination of rules, processes or laws by which businesses are operated, regulated or controlled. It’s the tool by which firms are directed & managed. Stakeholders drive the business and participate in important decision. Some of the specific processes that define corporate governance include action plans, performance measurement, disclosure practices, executive compensation decisions and dividend policies. It also covers procedures for recollection of conflicts of interest and explicit or implicit contracts between the company and stakeholders.

Corporate governance in India is not something new at all. To fight the mounting scams, all the big and small companies in the country today have corporate governance at place.

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