CORPORATE GOVERNANCE RESEARCH PAPER
Comparison of Corporate Governance in Taiwan and India final
* Table of Contents
1. What is corporate governance? 1
1.1 Corporate governance in India 1
1.2 Corporate governance in India – Clause 49 1
1.3 Rules and Regulation in India- Annexure I- Clause 49 of India Corporate Governance 2
I.Board of Directors 2
II. Audit Committee 5
III. Subsidiary Companies 8
IV. Disclosures 8
V. Whistle-blower policy in India 11
VI. CEO/CFO Certification 11
VII. Report on Corporate Governance 12
VIII. Compliance 13
2. Good Corporate Governance 14
2.1 Why we selected TSMC and Bajaj Auto? 14
2.2 Similarities between TSMC and Bajaj Auto: 14
2.3 Differences in TSMC andBajaj Auto: 15
3. Bad Corporate Governance 18
3.1 Satyam Background 19
3.2 Satyam Scope of Business 19
3.3 Satyam`s Rolling revenue of last four quarters: US$ 1936.1 (million) 21
3.4 How scandal relates Corporate Governance? 23
3.4.1 Auditing firms 23
3.4.2 V. CEO/CFO certification 23
3.4.3 Management (II) Manner of approval and authentication of the financial results 243.4.4 Management Whistle Blower Policy 24
3.4.5 Stakeholders 24
3.5 Satyam scandal – The impact 25
3.6 Conclusion of the Study Case 26
4. Conclusions 27
5. References 28
We have been studying Taiwan Corporate Governance for a semester. In this research paper we focus on India`s Corporate Governance.
This research paper is divided into three parts:Part ; focus on India’s Corporate Governance, rules and regulations.
Part ; deals with the comparison of two good corporate governance companies and its effect on the work environment.
Part ; discusses a famous study case in India “Satyam Computers”.
The objective of this research is to discover more about Corporate Governance in India and its impact on corporations.
This researchpaper serves as a reminder of importance of good corporate governance.
1. What is corporate governance?
In this section of the research paper we will focus on India’s Corporate Governance. To understand better we will define the term “corporate governance” usually refers to the rules and processes that are put in place to ensure the efficient and controlled administration and management ofa limited company.
Good corporate governance helps an organization achieve several objectives and some of the more important ones include:
* Strengthen management oversight functions and accountability.
* Balance skills, experience and independence on the board appropriate to the nature and extent of company operations
* Establish a code to ensure integrity
* Safeguard theintegrity of company reporting
* Risk management and internal control
* Disclosure of all relevant and material matters
* Recognition and preservation of needs of shareholders
Corporate governance in India
Recent events in India have put the spotlight on corporate governance practices of Indian companies. A key aspect that is being debated in the corridors of India Inc. is whetherwe need major regulatory changes to improve corporate governance, or whether improved standards of corporate governance could be achieved through adoption of principle-based standards of conduct. India Inc. has generally been proactive in promulgating corporate governance regulations. In doing so, a good balance has been achieved i.e. headway has been made, in terms of helping ensure thatregulations are not stifling our entrepreneurial initiatives. From a purely regulatory point, India compares favorably with most other developing and Asian economies as far as its corporate governance rules are concerned.
Corporate governance in India – Clause 49
Clause 49 of the listing agreement with stock exchanges provides the code of corporate governance prescribed by the Securities and...
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