Corporate Governance-Tools for Making CG Work

Abstract

Good corporate Governance ensures a healthy company, healthy economy and healthy legal system. Good governance ensures that a company delivers good amount of wealth to its shareholders, fulfill its financial and non-financial obligations to other stakeholders, within due dates. Most importantly will red flag issues that can have a material impact and provides ample time to the policy makers to take appropriate action. The Chapter will discuss corporate governance tools which are generally available to all companies and India’ in particular. It will analyze the barriers that an emerging economy like India has to face. In addition, it will explain why it is important for any country to follow good corporate governance practices. In the next section, it will look at how corporate governance can become an inseparable part of Indian economy. It also discusses involvement of ethics, internal governance, and choice of auditor and audit committee for India. In the conclusion, the paper gives a summary of how corporate governance is influencing the present economic condition of India.