Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

CORPORATE GOVERNANCE

1,516 views

Published on

Corporate governance and Cadbury report 1994 UK

Published in: Business, Economy & Finance
  • Login to see the comments

CORPORATE GOVERNANCE

  1. 1. PRESENTED BY: TAHA AHMAD GILL. HUZAIFA MUSHTAQ.
  2. 2.  Corporate governance is a system by which organization is directed & control by senior officers. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. CORPORATE GOVERNANCE
  3. 3.  PARTIES IN CORPORATE GOVERNANCE
  4. 4.  CORPORATE GOVERNANCE PILLARS
  5. 5.  ACCOUNTIBILITY  Ensure that management is accountable to Board.  Ensure that Board is accountable to Shareholders.
  6. 6.   Protect shareholder rights. Everyone should be treated equally. FAIRNESS
  7. 7.   Ensure Timely, accurate disclosure of Material's Matters.  Material matters: FINANCIAL SITUATION, OWNERSHIP & PERFORMANCE. TRANSPERANCY
  8. 8.  Who work for shareholders.  They are in organizations but not work for it.  Their interest is not Financial.  They look misconduct in organizations. INDEPENDENCE
  9. 9.   Good corporate governance can help companies ensure efficient use of resources.  To attract Investors.  To recognize stakeholder interests.  Less chances of Fraud.  Corporate governance plays a vital role in underpinning the integrity and efficiency of financial markets IMPORTANCE OF CORPORATE GOVERNANCE
  10. 10.  CONTINUED…
  11. 11.  Poor corporate governance weakens a company’s potential.  Financial difficulties.  High chances of fraud.  Capital will flow. POOR CORPORATE GOVERNANCE
  12. 12.   The Cadbury Report, which shows Aspects of Corporate Governance, is a report chaired by Adrian Cadbury that sets out recommendations on the arrangement of company boards and accounting systems to mitigate corporate governance risks and failures. CADBURY REPORT 1994 UK
  13. 13.  Sir Adrian Cadbury chaired a committee whose aims were to investigate the British corporate governance system and to suggest improvements restore investor confidence in the system. The Committee was set up in May 1991. The report embodied recommendations on corporate governance. The final report was released in December 1992 and then applied to listed companies reporting their accounts after 30th June 1993. And it was made public in 1994. BACKGROUND OF CADBURY REPORT
  14. 14.  CADBURY’S REPORT COMPANY: AN ORGANIZATION NAMED “SATYAM COMPUTERS” WHICH WAS AFFECTED BY POOR CORPORATE GOVERNANCE .
  15. 15.   Satyam computer ltd. Was established on June 24 1987. The founder of organization was Mr. Ramalinga raj. CEO of that company at the time of scam was Mr. Rahul.  Satyam computers headquarters was in Hyderabad. ABOUT SATYAM COMPUTERS LTD.
  16. 16.   Satyam case was not an easy issue.  It was involved in 14000 crore scam.  SATYAM Scam had been a great example of poor corporate governance.  It had showed poor relation b/w shareholders and employees.  This company is an example for other companies to avoid poor governance.  Taking this scam as a role model, other companies should implement good governance in order to set up rules and regulations. SATYAM CASE
  17. 17.  SATYAM announced acquisition with two parties namely MAYTAS properties and INFRA company.  Due to adverse reaction from institutional investors this partnership collapse within 12 hours.  After the deal was aborted, Four of the directors resigned from the board of the company on the same day. SATYAM SCAM DETAILS
  18. 18.   Governance issue arises in SATYAM ltd. Because of non fulfillment of obligations of a company to various stakeholders.  It shows poor relation between all stakeholders.  An organization is obligated to pay all taxes to government in time. But SATYAM didn’t pay their taxes to government. DETAILS CONTINUED…
  19. 19.   It is well known that shareholders has a right to get all information from an organization. They have the right to be shown all financial.  In SATYAM case, the above obligations were never fulfilled, the acquisition between two companies were announced without consent of shareholders  THE SHAREHOLDERS WERE CHEATED!!!! CONTINUED…
  20. 20.  Bank Balance (Rs.5042 cr)  Accrued Interest ( Rs. 376 cr) Liability (1230cr) Debtors (490 cr) Revenue (2700 cr) Financial Statements of Company.
  21. 21.  NOTE: THIS(SATYAM) COMPANY WAS BANNED FOR 8 YEARS

×