CONTENTS MEANING OF CG SIGNIFICANCE OF CG PRINCIPLES OF CG 2
MEANING OF CG
CORPORATE GOVERNANCE Corporate governance is concerned with a set of principles, ethics, values, morals, rules regulations, & procedures Corporate governance helps establish a system where a director is showered with duties and responsibilities of the company's affairs. For effective corporate governance, its policies need to be such that the directors of the company should not abuse their power and instead should understand their duties and responsibilities towards the company and should act in the best interests of the company in the broadest sense. 4 Subjectivity
OBJECTIVES OF CG 5 CORPORATE GOALS 🤝 STAKEHOLDER GOALS CORPORATE FUNCTIONING ⬆️ MISMANAGEMENT ⬇️ SPECIFYING RESPONSIBILITY OF BoD AND MANAGERS
Significance of cg 6
NEED FOR CG LIBERALISATION 1996 GREATER ACCOUNTABILITY TOWARDS SHAREHOLDERS AND CUSTOMERS FIRM’S RESPONSIBILITIES EMPLOYEES CUSTOMERS COMMUNITIES MANAGEMENT OWNERSHIP
8 IMPORTANCE OF CG SEPARATION OF OWNERSHIP FROM MANAGEMENT SCATTERED SHAREHOLDERS GLOBALISATION OF ECONOMY NEED FOR RESTRUCTURING INVESTOR PROTECTION FOREIGN INVESTMENT EXECUTIVE COMPENSATION EXPECTATIONS OF SOCIETY FINANCIAL REPORTING SEPARATION OF OWNERSHIP FROM MANAGEMENT
CASE STUDY Founded in 1975, Bridgewater is a prominent hedge fund with a strong track record. It's known for its unique culture, which emphasizes radical transparency, meritocracy, and continuous learning. Bridgewater recently transitioned its governance structure. As of September 2022, an Operating Board of Directors oversees the company, with representation from: Equity owners Senior employees The CEO Outside directors This unique board structure reflects Bridgewater's focus on stakeholder engagement and a move away from founder control. 11